Degree of Operating Leverage, Percent Change in ProfitRingsmith Company is considering two different processes to make

its product$$process $1$ and process $2.$ Process $1$ requires Ringsmith

to manufacture subcomponents of the product in$-$house. As a result,

materials are less expensive, but fixed overhead is higher. Process

$2$ involves purchasing all subcomponents from outside suppliers. The

direct materials costs are higher, but fixed factory overhead is

considerably lower. Relevant data for a sales level of $34,000$ units

follow:Required:$1.$Compute the degree of operating

leverage for each process. Round your answers to one decimal place.

Use the rounded answers in subsequent calculations$\mathrm{.}2.$Suppose that sales are $20$ percent

higher than budgeted. By what percentage will operating income

increase for each process?What will be the$$increase$$in operating income

for each system? Round your answers to the nearest dollar.What will be the$$total operating income$$for

each process? Round your intermediate calculations and final

answers to the nearest dollar. Use the rounded answers in

subsequent calculations$\mathrm{.}3.$What

if$$unit sales are $10$ percent lower than

budgeted? By what percentage will operating income decrease for

each process?What will be the$$total operating income$$for

each process? Round your answers to the nearest dollar.