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Operating Leverage Practice Prob ubunting 140 Able Co. 500,000 300,000 200,000 150,000 Baker Co. Charlie Co Sales Variable Costs Contribution Margirn Fixed Costs Operating Income

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Operating Leverage Practice Prob ubunting 140 Able Co. 500,000 300,000 200,000 150,000 Baker Co. Charlie Co Sales Variable Costs Contribution Margirn Fixed Costs Operating Income 500,000 500,000 400,000 100,000 50,000 50,000 450,000 400,000 50,000 50,000 50,000 1. What is the operating leverage factor for each company? 2. What is the percent change in operating income for each company if there is a 15% sales increase? 3. What is the break even sales dollars for each company? 4. What is the margin of safety for each company based on the original data

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