Company X uses a commission$-$based approach, where its sales staff operates exclusively on commission. Company Y$,$ on the other hand, pays its sales staff a flat salary with no commission. Here are the basics for each company.

$\backslash$table$[[,$Company X$,$Company Y$],[$Current sales volume,$9,800$ units,$9,800$ units$],[$Selling price,$$55,$$$55],[$Variable cost per unit,$$22,$$$11],[$Fixed costs,$107,800,$$ $215,600]]$

$($a$)$

Present a contribution margin income statement for each company at its current volume of sales, and calculate the degree of operating leverage $($DOL$)$ for each. $($Round degree of operating leverage to $1$ decimal place, e$.$g$.15\mathrm{.}2.)$

Company X

Contribution Margin Income Statement