The CVP income statements shown below are available for Bramble Company and Vaughn Company. Bramble Co. Vaughn Co. Sales $503,000 $503,000 Variable costs 248,000 45,000 Contribution margin 255,000 458,000 Fixed costs 155,000 358,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e. g. 1.15.) Degree of Operating Leverage Bramble Vaughn (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Bramble Company Vaughn Company $ $ $ $

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are: