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Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $400,000 $625,000 Less: Variable costs

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Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $400,000 $625,000 Less: Variable costs 200,000 125,000 Contribution margin $200,000 $500,000 Less: Fixed costs 450,000 150,000 $50,000 Operating income $50,000 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

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