Question: Juras Inc. and Hinson Inc. have the following operating data: a. Compute the operating leverage for Juras Inc. and Hinson Inc. b. How much would

Juras Inc. and Hinson Inc. have the following operating data:

a. Compute the operating leverage for Juras Inc. and Hinson Inc.
b. How much would income from operations increase for each company if the sales of each increased by 10%?
c. Why is there a difference in the increase in income from operations for the two companies?Explain.

Juras Hinson Sales Variable costs Contribution margin Fixed costs Income from operations 160,000 $215,000 115,000 $100,000 75,000 10,000 25,000 130,000 30,000 20,000

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