Varner Inc. and King Inc. have the following operating data:

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Varner Inc. and King Inc. have the following operating data:

a. Compute the operating leverage for Varner Inc. and King Inc.
b. How much would income from operations increase for each company if the sales of each increased by 20%?
c. Why is there a difference in the increase in income from operations for the two companies?Explain.

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