Ringsmith Company is considering two different processes to make its product-process 1 and process 2. Process 1 requires Ringsmith to manufacture subcomponents of the product in-ho materials are less expensive, but fixed overhead is higher. Process 2 involves purchasing all subcomponents from outside suppliers. The direct materials costs are higher, but fixed factory considerably lower. Relevant data for a sales level of 26,000 units follow: Process 1 Process 2 Sales $6,968,000 2,340,000 $4,628,000 3,521,060 $1,106,940 $268 $90 $178 $6,968,000 3,744,000 $3,224,000 1,386,890 $1,837,110 $268 $144 $124 Varoable expenses Contribution margin Less total fixed expenses Operating income Unit selling price Unit variable cost Unit contribution margin Required 1. Compute the degree of operating leverage for each process. Round your answers to one decimal place. Use the rounded answers in subsequent calculations Process1 4.18 Process 2 2. Suppose that sales are 20 percent higher than budgeted. By what percentage will operating income increase for each process? Process 1 1.75 Process2 What will be the increase in operating income for each system? Round your answers to the nearest dollar. Process1 Process 2 What will be the total operating income for each process? Round your intermediate calculations and final answers to the nearest dollar. Use the rounded answers in subsequent calculations Process 1 Process2 3. What if unit sales are 10 percent lower than budgeted? By what percentage will operating income decrease for each process? Process 1 Process 2 What will be the total operating income for each process? Round your answers to the nearest dollar Process1 Process 2