The CVP income statements shown below are available for Billings Company and Bozeman Company.

a. Compute the degree of operating leverage for each company. (Round answer to 3 decimal places, e.g. 1.150.)
b .Assuming that sales revenue increases by 10%, prepare a variable costing income statement for eachcompany.

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Particulars Billings Co Bzeman Co Sales revenue Variable costs Contribution margin Fixed costs Net income 600,000 600,000 280,000 S 320,000 520,000 170,000 $370,000 150,000150,000 80,000