explain step by step the solution with calculation wherever required

ABC Industries, a well-established firm in plastics, is considering the purchase of one of the two manufacturing companies. The financial manager of the company has developed the following information about the two companies each having total assets of Rs.1500,000. a. Prepare operating statements for both the companies, assuming total fixed costs are likely to remain unchanged and the variable costs are a linear function of sales. b. Calculate the degree of operating leverage. c. If ABC industries wishes to buy a company which has a lower degree of business risk, which company would be purchased by it