oblem #2: Sales Variable costs Contribution margin Fixed costs Net income Old $2,000,000 1.400,000 600,000 400,000 200.000 New $2,000,000 600,000 1,400,000 1.200,000 200.000 Instructions: Compute the degree of operating leverage for both firms. Which firm has a higher breakeven, why? Which firm makes more profit after breakeven, why