Question
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $300,900 $852,000 Variable costs 120,700 511,200 Contribution margin $180,200 $340,800
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $300,900 | $852,000 | ||
| Variable costs | 120,700 | 511,200 | ||
| Contribution margin | $180,200 | $340,800 | ||
| Fixed costs | 127,200 | 198,800 | ||
| Income from operations | $53,000 | $142,000 | ||
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 | % |
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Introduction To Accounting
Authors: Peter Scott
2nd Edition
0198849966, 978-0198849964
