ch 19 q 3

The single-column CVP income statements shown below are available for Ivanhoe Company and Oriole Company. (a1) Compute the degree of operating leverage for each company, (Round answers to 2 decimal places, e.g. 1.15.) (b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-column CVP income statement for each company. (b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-column CVP income statement for each company