Assuming that sales revenue increases by 20%, prepare a variable cost income statement for each company. Oldham Company Newton Company Sales 444000 296000 $ Variable costs 266400 88800 Contribution margin 177600 207200 Less Fixed costs (98000) (246000) Operating income 79600 (38800) LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Assuming that sales revenue decreases by 20%, prepare a variable cost income statement for each company. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Oldham Company Newton Company Sales 296000 296000 Variable costs 177600 59200 Contribution margin 118400 236800 Add Fixed costs (98000) (246000) Operating income 20400 (9200) Sales revenue Variable costs Contribution margin Fixed costs Oldham Company $370,000 222,000 148,000 98,000 Newton Company $370,000 74,000 296,000 246,000 $50,000 Operating income $50,000 Calculate the break-even point in dollars and the margin of safety ratio for each company. (Round break-even point to the nearest whole dollar, e.g. 5,275 and margin of safety ratio to 2 decimal places, e.g. 15.25%.) Oldham Company Newton Company Break-even point 245000 307500 $ $ Margin of safety ratio 33.78 % 16.89 % LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 15.25.) Oldham Company 2.96 Newton Company 5.92