The following CVP income statements are available for Sunland Company and Carla Vista Company:

$($a$)$

Calculate the break$-$even point in dollars and the margin of safety ratio for each company. $($Round break$-$even point to the

nearest whole dollar, e$.$g$.5,275$ and margin of safety ratio to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

$($b$)$Calculate the degree of operating leverage for each company;

Sunland Company: $2\mathrm{.}96$

Carla Vista Company: $5\mathrm{.}92$

$($c$)$ Assuming that sales revenue increases by $20\%,$ prepare a variable cost income statement for each company.

Sales:

Variable costs:

Contribution margin:

Fixed cost:

Operating income: