1. Beck Inc. and Bryant Inc. have the following operating data:

	Beck Inc.		Bryant Inc.
Sales	$374,100		$1,122,000
Variable costs	(150,100)		(673,200)
Contribution margin	$224,000		$448,800
Fixed costs	(154,000)		(261,800)
Operating income	$70,000		$187,000

a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.

Beck Inc.
Bryant Inc.

b. How much would operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.

	Dollars	Percentage
Beck Inc.	$		%
Bryant Inc.	$		%

2. Break-even sales and sales to realize operating income

For the current year ended March 31, Cosgrove Company expects fixed costs of $555,000, a unit variable cost of $62, and a unit selling price of $92.

a. Compute the anticipated break-even sales (units). units

b. Compute the sales (units) required to realize operating income of $129,000. units