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please all of them and send me the entire solution of it. Q4. Income statements for two different companies in the same industry are as
please all of them and send me the entire solution of it.
Q4. Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $500,000 $500,000 Less: Variable costs 250,000 100,000 Contribution margin $250,000 $400,000 Less: Fixed costs 200,000 350,000 Operating income $ 50,000 S 50,000 Required: 1. Compute the degree of operating leverage for each company. 2. Compute the break-even point for each company. Explain why the break-even point for Quintex, Inc., is higher. 3. Suppose that both companies experience a 50 percent increase in revenues. Compute the percentage change in profits for each company. Explain why the percentage increase in Quintex's profits is so much greater than that of TrimaxStep by Step Solution
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