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

	Beck Inc.		Bryant Inc.
Sales	$171,300		$456,000
Variable costs	68,700		273,600
Contribution margin	$102,600		$182,400
Fixed costs	45,600		30,400
Income from operations	$57,000		$152,000

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

Beck Inc.	fill in the blank 1
Bryant Inc.	fill in the blank 2

b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number.

	Dollars	Percentage
Beck Inc.	$fill in the blank 3	fill in the blank 4	%
Bryant Inc.	$fill in the blank 5	fill in the blank 6	%

c. The difference in the

increasesdecreases

of income from operations is due to the difference in the operating leverages. Beck Inc.'s

higherlower

operating leverage means that its fixed costs are a

largersmaller

percentage of contribution margin than are Bryant Inc.'s.