Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. $562,500 112,500 $450,000 400,000 $50,000 Sales $500,000 250,000 $250,000 200,000 $50,000 Less: Variable costs Contribution margin Less: Fixed costs Operating income Required 1. Compute the degree of operating leverage for each company Trimax Quintex 2. Compute the break-even point in dollars for each company Trimax, Inc. Quintex, Inc. Why is the break-even point for Quintex, Inc., higher? 3. Suppose that both companies experience a 40 percent increase in revenues. Compute the percentage change in profits for each company Trimax Quintex