Both Apple and Google sell electronic devices, and each of these companies has a different product mix. Assume the following data are available for both companies.

APPLE

GOOGLE

Required

1.Compute income for each company.

2.Compute the degree of operating leverage for each company.

3.If unit sales decline, which company would experience the larger decline in income ?

\begin{tabular}{lrr} \hline \$millions & \multicolumn{1}{c}{ Apple } & \multicolumn{1}{c}{ Google } \\ \hline Sales & $260,174 & $161,857 \\ Variable costs .. & 122,034 & 86,302 \\ Fixed costs ....... & 82,884 & 41,212 \\ \hline \end{tabular}