Ringsmith Company is considering two different processes to make its product-process 1 and process 2. Process i requires Ringsmith to manufacture subcomponents the product in-house. As a result, materials are less expensive, but fixed overhead is higher. Process 2 involves purchasing all subcomponents from outside suppliers. The direct materials costs are higher, but fixed factory overhead is considerably lower. Relevant data for a sales level of 27,000 units follow: Process 1 Process 2 Sales $7,290,000 $7,290,000 Variable expenses 2,430,000 3,834,000 Contribution margin $4,860,000 $3,456,000 Less total fixed expenses 3,526,325 1,365,810 Operating income $1,333,675 $2,090,190 Unit seling price $270 $270 Unit variable cost $90 Unit contribution margin $180 $128 Required: 1. Compute the degree of operating leverage for each process, Round your answers to one decimal place. Use the rounded answers in subsequent calculations Process 1 $142 Process 2 2. Suppose that sales are 20 percent higher than budgeted. By what percentage will operating income increase for each process? Process 1 Process 2 What will be the increase in operating income for each system? Round your answers to the nearest dollar Process 1 2. Suppose that sales are 20 percent higher than budgeted. By what percentage will operating income increase for each process? Process 1 Process 2 what will be the increase in operating income for each system? Round your answers to the nearest dollar. Process 1 Process 2 What will be the total operating income for each process? Round your intermediate calculations and final answers to the nearest dallar. Use the rounded answers in subsequent calculations Process 1 Process 2 3. What if unit sales are 10 percent lower than budgeted? By what percentage will operating income decrease for each process? Process 1 Process 2 What will be the total operating income for each process? Round your answers to the nearest dollar Process Process 2