HighTech Inc. and OldTime Co. compete within the same industry and had the following operating results in 2019: Sales Variable expenses Contribution margin Fixed expenses Operating income HighTech Inc. $4,100,000 820,000 $3,280,000 2,630,000 $ 650,000 oldTime Co. $4,100,000 2,460,000 $1,640,000 990,000 $ 650,000 Required: a. Calculate the breakeven point for each firm in terms of revenue. b. What observations can you draw by examining the breakeven point of each firm given that they earned an equal amount of operating income on identical sales volumes in 2019? c. Calculate the amount of operating income (or loss) that you would expect each firm to report in 2020 if sales were to 1. Increase by 20%. 2. Decrease by 20% d. Using the amounts computed in requirement c, calculate the increase or decrease in the amount of operating income expected in 2020 from the amount reported in 2019. e. Explain why an equal percentage increase or decrease) in sales for each firm would have such differing effects on operating income. f. Calculate the ratio of contribution margin to operating income for each firm in 2019. g. Multiply the expected increase in sales of 20% for 2020 by the ratio of contribution margin to operating income for 2019 computed in requirement f for each firm. h. Multiply your answer in requirement g by the operating income of $650,000 reported in 2019 for each firm. i. Compare your answer in requirement h with your answer in requirement d. What conclusions can you draw about the effects of operating leverage from the steps you performed in requirements f, g, and h? Required A Required B Required c1 Required C2 Required D Required E Required F Required G Required H Required I Calculate the breakeven point for each firm in terms of revenue. (Do not round intermediate calculations.) Break-even sales revenue High Tech Inc. Old Time Co. Required A Required B Required C1 Required C2 Required D Required E Required F. Required G Required H Required I What observations can you draw by examining the breakeven point of each firm given that they earned an equal amount of operating income on identical sales volumes in 2019? Required A Required B Required C1 Required C2 Required D Required E Required F. Required G Required H Required I Calculate the amount of operating income (or loss) that you would expect each firm to report in 2020 if sales were to increase by 20%.(Losses should be indicated by minus sign.) Operating income (or loss) High Tech Inc. OldTime Co. Required A Required B Required c1 Required C2 Required D Required E Required F. Required G Required H Required I Calculate the amount of operating income (or loss) that you would expect each firm to report in 2020 if sales were to decrease by 20%.(Losses should be indicated by minus sign.) Operating income (or loss) High Tech Inc. Old Time Co. Required A Required B Required c1 Required C2 Required D Required E Required F Required G Required H Required I Using the amounts computed in requirement c, calculate the increase or decrease in the amount of operating income expected in 2020 from the amount reported in 2019. HighTech Inc. OldTime Co. Increase (Decrease) with 20% sales increase Increase (Decrease) with 20% sales decrease Required A Required B Required c1 Required C2 Required D Required E Required F Required G Required H Required I Explain why an equal percentage increase (or decrease) in sales for each firm would have such differing effects on operating income