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Operating Leverage SunRise Inc. and SunSet Inc. have the following operating data: SunRise Inc. SunSet Inc. Sales $277,900 $834,000 Variable costs (111,500) (500,400) Contribution margin

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Operating Leverage SunRise Inc. and SunSet Inc. have the following operating data: SunRise Inc. SunSet Inc. Sales $277,900 $834,000 Variable costs (111,500) (500,400) Contribution margin $166,400 $333,600 Fixed costs (114,400) (194,600) Operating income $52,000 $139,000 a. Compute the operating leverage for SunRise Inc. and SunSet Inc. Round the answers to one decimal place. SunRise Inc. SunSet Inc. b. How much would operating income increase for each company if the sales of each increased by 20%?! Dollars Percentage SunRise Inc. SunSet Inc

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