Marks-15 Question No-5 Varner Inc. and King Inc. have the following operating data: Varner King Sales $300,000 $600,000 Variable costs 120,000 360,000 Contribution margin $180,000 $240,000 Fixed costs 120,000 80,000 Income from operations $ 60,000 $160,000 Required: a) Compute the operating leverage for Varner Inc. and King Inc. b) How much income from operations would increase for each company if the sales of each increased by 20%? c) Why is there a difference in the increase in income from operations for the two companies? Explain