The single-column CVP income statements shown below are available for Cullumber Company and Ivanhoe Company.

		Cullumber Co.		Ivanhoe Co.
Sales		$510,000		$510,000
Variable costs		246,000		55,000
Contribution margin		264,000		455,000
Fixed costs		164,000		355,000
Net income		$100,000		$100,000

(a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.)

		Degree of Operating Leverage
Cullumber		enter a value rounded to 2 decimal places
Ivanhoe		enter a value rounded to 2 decimal places

(b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-column CVP income statement for each company.

		Cullumber Company		Ivanhoe Company
select an income statement item Contribution MarginSales RevenueNet Income/(Loss)Administrative ExpensesTotal Fixed ExpensesCost of Goods SoldTotal Variable ExpensesGross ProfitVariable CostsSelling ExpensesFixed Costs		$enter a dollar amount		$enter a dollar amount
select an income statement item Variable CostsContribution MarginTotal Fixed ExpensesTotal Variable ExpensesSales RevenueCost of Goods SoldSelling ExpensesFixed CostsAdministrative ExpensesGross ProfitNet Income/(Loss)		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part Total Variable ExpensesVariable CostsCost of Goods SoldGross ProfitTotal Fixed ExpensesNet Income/(Loss)Sales RevenueSelling ExpensesAdministrative ExpensesFixed CostsContribution Margin		enter a total amount for the first part		enter a total amount for the first part
select an income statement item Contribution MarginFixed CostsVariable CostsAdministrative ExpensesGross ProfitSelling ExpensesCost of Goods SoldNet Income/(Loss)Sales RevenueTotal Variable ExpensesTotal Fixed Expenses		enter a dollar amount		enter a dollar amount
select a closing name for this statement Total Variable ExpensesGross ProfitCost of Goods SoldFixed CostsTotal Fixed ExpensesSales RevenueAdministrative ExpensesNet Income/(Loss)Selling ExpensesContribution MarginVariable Costs		$enter a total net income or loss amount		$enter a total net income or loss amount