Degree of Operating Leverage, Percent Change in Proft Ringsmith Company is considering two different processes to make its product-process 1 and process 2. Process 1 requires Ringsmith to manufacture subcomponents the product in-house. As a result, materiais are less expensive, but foxed overhead is higher, Process 2 involves purchasing all subcomponents from outside suppliers. T direct materials costs are higher, but fixed factory overhead is considerably lower, Relevant data for a saies level of 34,000 units follow: 1. Computh the degree of operating leverage for each process. Round your answers to one decimal place. Use the rounded answers in subseguent calculations. 2. Suppose that sales are 20 percent Ngher than budgeted. By what percentage wall operating income increase for each process? Process 1 Process 2 x= x 46 What will be the increose in operating income tor each system? Round your answers to the nearest dollar. Process 1 Process 2 . x What wil be the increase in operating income for each system? Round your answers to the nearest dollar. Process 1 Process 2 X 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. Process 1 Process 2 x 3. What if unit sales are 10 percent lower than budgeted? By what percentage will operating income decrease for each process? Process 1 Process 2 What will be the tocal operating income for each process? Round your intermediate caiculations and final answers to the nearest dollar, Use the rounded answers in subsequent calculations. Process 1 Process 2 x x