Calculate degree of operating leverage. *BE6.9 (LO 6) Sanjay's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labour costs but will increase depreciation expense. The contribution margin is expected to increase from $160,000 to $240,000. Operating income is expected to be the same at $40,000. Calculate the degree of operating leverage before and after the purchase of the new equipment. Interpret your results. Calculate break-even point with change in operating leverage. *BE6.10 (LO 2, 6) Presented below are the CVP income statements for Finch Company and Sparrow Company. They are in the same industry, with the same operating incomes, but different cost structures. Finch Co. Sparrow Co. Sales $200,000 $200,000 Variable costs 80,000 50,000 Contribution margin 120,000 150,000 Fixed costs 60,000 90,000 Operating income $ 60,000 $ 60,000 Calculate the break-even point in dollars for each company and comment on your findings