Juras Inc. and Hinson Inc. have the following operating data: a. Compute the operating leverage for Juras
Question:
Juras Inc. and Hinson Inc. have the following operating data:
a. Compute the operating leverage for Juras Inc. and Hinson Inc.
b. How much would income from operations increase for each company if the sales of each increased by 10%?
c. Why is there a difference in the increase in income from operations for the two companies?Explain.
Transcribed Image Text:
Juras Hinson Sales Variable costs Contribution margin Fixed costs Income from operations 160,000 $215,000 115,000 $100,000 75,000 10,000 25,000 130,000 30,000 20,000
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a b Juras Incs income from operations would increase by 30 300 10 or 3000 ...View the full answer
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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