THE TOROWing CV come statements are avanaviciu Cununver Corp. and varitve, me Sales revenue Variable costs Contribution margin Fixed costs Net income (a) Cullumber Corp. Cullumber $742,000 Ivanhoe 371,000 371,000 238,500 Your answer is correct. $132,500 Degree of Operating Leverage 2.8 Ivanhoe, Inc. 3.9 $742,000 Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) 225,250 516,750 384,250 $132,500 1.257 2.5 II

(a) Your anwer h correct. Compute the degree of operating ieveraipe for each compary. (Round onswers to 1 decimal ploce, es. 15.5) Assume that sales revenue decreases by 20%. Prepare a CVP income statement for each company, (Do not round intermediate calculations]