Use the following information to answer the questions below.

	Company 1	Company 2
Sales	$50,000	$50,000
Variable Costs	10,000	5,000
Contribution Margin	40,000	45,000
Fixed Costs	30,000	40,000
Operating Income	10,000	5,000

A.

270%

B.

150%

C.

120%

D.

90%

E.

80%

F.

37.5%

G.

30%

H.

10%

I.

9%

J.

8%

K.

4%

L.

Company 1

M.

Company 2

QUESTION: (CHOOSE WHICH LETTER FITS BEST WITH EXAMPLE)

- A. B. C. D. E. F. G. H. I. J. K. L. M.	1. If Company 1's sales increase by 30%, its operating income will increase by what percent?
- A. B. C. D. E. F. G. H. I. J. K. L. M.	2. If Company 2's sales increase by 30%, its operating income will increase by what percent?
- A. B. C. D. E. F. G. H. I. J. K. L. M.	3. If both Companies 1 and 2 have a 30% decrease in sales, which company's profit will have a greater change