Using the information below, calculate the operating leverage for each firm:

	James	Jordan
Sales	$2,000,000	$2,000,000
Variable Costs	1,000,000	400,000
Contribution margin	1,000,000	1,600,000
Fixed costs	800,000	1,400,000
Operating income	$200,000	$200,000

If the sales increase by 20%, with the variable cost per unit remaining constant and the fixed costs not changing, what will be the increase in operating income for each firm?