arning Objective 7 eck Figure mpany A operating Frage = 5 Problem 28-7A Objective: To compute operating leverage and its effect on income from operations for two companies Data for two different companies in the same industry are: Company Sales Variable Costs Fixed Costs $425,000 $300,000 $100,000 B $525.000 $375,000 $125,000 Directions: 1. Compute the operating leverage for each company. 2. For each company, compute the income from operations if sales increased by 4% A