Please answer G and H

Case $12-34($Algo$)$ Understanding the effects of operating leverage LO $12-12$

HighTech Incorporated and OldTime Company compete within the same industry and had the following operating results in $2022$ :

f$.$ Calculate the ratio of contribution margin to operating income for each firm in $2022.($Hint: Divide contribution margin by operating

income.$)$

g$.$ Multiply the expected increase in sales of $20\%$ for $2023$ by the ratio of contribution margin to operating income for $2022$ computed

in requirement f for each firm. $($Hint: Multiply your answer in requirement $($f$)$ by $0\mathrm{.}2.)$

h$.$ Multiply your answer in requirement g by the operating income of $$460,000$ reported in $2022$ for each firm.

i$.$ Compare your answer in requirement h with your answer in requirement d$.$ What conclusions can you draw about the effects of

operating leverage from the steps you performed in requirements f$,$g$.$ and h $?$

F$.$

Calculate the ratio of contribution margin to operating income for each firm in $2022.($Hint: Divide contribution margin by

operating income.$)$

Note: Do not round intermediate calculations and round your final answers to $2$ decimal places.

G

Multiply the expected increase in sales of $20\%$ for $2023$ by the ratio of contribution margin to operating income for $2022$

computed in requirement f for each firm. $($Hint: Multiply your answer in requirement $($ f $)$ by $0\mathrm{.}2.)$

Note: Do not round intermediate calculations and round your final answers to $2$ decimal places.

$*$You must use the full trailing decimal points from F to accurately solve for G

H

Multiply your answer in requirement g by the operating income of $$460,000$ reported in $2022$ for each firm.

Note: Do not round intermediate calculations.