The following CVP income statements are available for Pharoah Corp. and Sheridan, Inc.

		PharoahCorp.				Sheridan, Inc.
Sales revenue			$ 784,000					$ 784,000
Variable costs			364,000					210,000
Contribution margin			420,000					574,000
Fixed costs			280,000					434,000
Net income			$ 140,000					$ 140,000

(a)

Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.)

		Degree of Operating Leverage
Pharoah		enter the degree of operating leverage rounded to 1 decimal place
Sheridan		enter the degree of operating leverage rounded to 1 decimal place