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. L 3.2 SunSet Inc. I 2.4 b. How much would operating income increase for each company if the sales of each increased by 20%? Dollars Percentage 64 48 $ 85,280 x $ 205,720 x SunRise Inc. % % SunSet Inc. c. SunRise Inc.'s higher operating leverage means that its fixed costs are a larger percentage of com