Question: E11-22 Operating leverage SunRise Inc. and SunSet Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Operating income SunRise Inc. $3,125,000

E11-22 Operating leverage SunRise Inc. and SunSet Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Operating income SunRise Inc. $3,125,000 $1,250,000 SunSet Inc $ 8,400,000 1875,0005,000,000) (750,000) $ 3,400,000 (2.400,000) 500000 $100000 a. Compute the operating leverage for SunRise Inc. and SunSet Inc. b. How much would operating income increase for each company if the sales of each in by 25%? c. Why is there a difference in the increase in operating income for the two Explain

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