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Varner Inc. and King Inc. have the following operating data: a. Compute the operating leverage for Varner Inc. and King Inc. If required, round to
Varner Inc. and King Inc. have the following operating data: a. Compute the operating leverage for Varner Inc. and King Inc. If required, round to one decimal place. Varner Inc. 2.4 King Inc. 1.8 b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Dollars Percentage Varner Inc. King Inc. The difference in the Increases of income from operations is due to the difference in the operating leverages. Varner Inc.'s higher operating leverage means that its fixed costs are a larger percentage of contribution margin than are King Inc.'s
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