Income statements for two different companies in the same industry are as follows:

Trimax, Inc. Quintex, Inc. Sales P500,000 P500,000 Less: Variable costs 250,000 100,000 Contribution margin P250,000 9400,000 Less: Fixed costs 200,000 350,000 Operating income # 50.000 # 50.000 1. Compute the degree of operating leverage for each company. 2. Compute the break-even point for each company. Explain why the break-even point for Quintex, Inc., is higher. 3. Suppose that both companies experience a 50 percent increase in revenues. Compute the percentage change in profits for each company. Explain why the percentage increase in Quintex's profits is so much greater than that of Trimax