Equillion, Inc., and Storis, Inc., are two companies in the pharmaceutical industry. Equillion has relatively high fixed costs related to research and development. Storis, however, does little research and development. Instead, the company pays for the right to produce and market drugs that have been developed by other companies. The amount paid is a percent of sales. Thus, Storis has relatively high variable costs and relatively low fixed costs:

Equillion, Inc.	Storis, Inc.
Sales	$157,335,000	$157,335,000
Less variable costs	45,627,150	97,547,700
Less fixed costs	88,274,000	36,353,450
Profit	$23,433,850	$23,433,850

a. Which company has the higher operating leverage? B. Calculate the expected percentage change in profit for a 10 percent increase (or for a 10 percent decrease) in sales for each company.(Round answers to 2 decimal places, e.g. 15.25%.)