Question: < Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $480,000 $600,000 Less:

< Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $480,000 $600,000 Less:

< Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $480,000 $600,000 Less: Variable costs 240,000 120,000 Contribution margin $240,000 $480,000 Less: Fixed costs 180,000 420,000 Operating income $60,000 $60,000 Required: 1. Compute the degree of operating leverage for each company. Trimax Quintex 2. Compute the break-even point in dollars for each company. Trimax, Inc. Quintex, Inc. Why is the break-even point for Quintex, Inc., higher?

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