QUESTION 2 DD Company and CC company have the following operating data: DD Company CC Company Sales 1250,000 2000,000 Variable costs 750,000 1250,000 Contribution margin 500,000 750,000 Fixed costs 400,000 450,000 Income from operations 100,000 300,000 Compute the operating leverage for DD Company and CC Company. b. How much would income from operations increase for each company if the sales of each increased by 20%? C. Why is there a difference in the increase in income from operations for the two companies? Explain.