Operating leverage Asha Inc. and Samir Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Asha Inc. Samir Inc. Asha Inc. Operating income a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. Samir Inc. c. The difference in the fixed costs are a $2,500,000 (1,500,000) $1,000,000 (800,000) $200,000 b. How much would operating income increase for each company if the sales of each increased by 30%? Dollars Percentage 4 Samir Inc. $4,000,000 (2,500,000) $1,500,000 (900,000) $600,000 % % of operating income is due to the difference in the operating leverages. Asha percentage of contribution margin than are Samir Inc.'s. 60 20 20 END

Operating leverage Asha Inc. and Samir Inc. have the following operating data: a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. Samir Ine. b. How much would operating income increase for each company if the sales of each increased by 30% ? c. The difference in the fixed costs are a of operating income is due to the difference in the operating leverages. Asha percentage of contribution margin than are Samir Inc.'s. Operpony leverape Agha inc, and Samir the, have the foliowing peerationg data: Asha inc. sariar trie