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Exercise 6.37 a1, b The CVP income statements shown below are available for Billings Company and Bozeman Company. Sales revenue Variable costs Contribution margin Fixed

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Exercise 6.37 a1, b The CVP income statements shown below are available for Billings Company and Bozeman Company. Sales revenue Variable costs Contribution margin Fixed costs Operating income Billings Co. $852,000 413,000 439,000 339,000 $100,000 Bozeman Co. $852,000 154,000 698,000 598,000 $100,000 Calculate the degree of operating leverage for each company. (Round answer to 2 decimal places, e.g. 15.25.) Operating leverage Billings Co. Bozeman Co. Assuming that sales revenue increases by 16%, prepare a variable costing income statement for each company. Billings and Bozeman Companies CVP Income Statements Billings Bozeman

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