Question: HighTech Inc. and OldTime Co. compete within the same industry and had the following operating results in 2019: HighTech Inc. Sales Variable expenses Contribution margin

 HighTech Inc. and OldTime Co. compete within the same industry and

HighTech Inc. and OldTime Co. compete within the same industry and had the following operating results in 2019: HighTech Inc. Sales Variable expenses Contribution margin Fixed expenses Operating income $420,000 84,000 $336,000 294,000 $ 42,000 Oldtime Co. $420,000 252,000 $ 168,000 126,000 $ 42,000 Required: f. Calculate the ratio of contribution margin to operating income for each firm in 2019. g. Multiply the expected increase in sales of 20% for 2020 by the ratio of contribution margin to operating income for 2019 computed in requirement f for each firm. h. Multiply your answer in requirement g by the operating income of $42,000 reported in 2019 for each firm

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