Operating Leverage Varner Inc. and King Inc. have the following operating data King Inc. Varner Inc. $266,900 107,100 $159,800 112,800 $47,000 Sales Variable costs Contribution margin Fixed costs Income from operations a. Compute the operating leverage for Varner Inc. and King Inc. If required, round to one decimal place Varner Inc. King Inc. b. How much would income from operations increase for each company if the sales of each increased by 10%? If required, round answers to nearest $750,000 450,000 $300,000 175,000 $125,000 whole number Dollars Percentage Varner Inc. King Inc. c. The difference in the of income from operations is due to the difference in the operating leverages. Varner Inc.'s operating leverage means that its fixed costs are a percentage of contribution margin than are King Inc.'s