The following CVP income statements are available for Cat and Dog Company. Dog Company Cat Company 6 Sales $ 600,000 $ 400.000 7 Var Costs $ 380,000 $ 80.000 8 Contribution Margin $ 220,000 $ 320,000 9 Fixed Costs S 170,000 $ 270,000 10 Net Income S 50,000 $ 50,000 11 12 Instructions: 13 A: Compute the break even point in dollars (round to three places) for each company. 14 B: Assuming that sales revenue increases by 25%, prepare a CVP income statement for each company. 15 C: Discuss how the cost structure of these two companies affects their operating leverage and profitability