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Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $ 2 1 3 , 8 0 0 $ 6
Beck Inc. and Bryant Inc. have the following operating data:
Beck Inc. Bryant Inc.
Sales $ $
Variable costs
Contribution margin $ $
Fixed costs
Income from operations $ $
a Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.
Beck Inc. fill in the blank
Bryant Inc. fill in the blank
b How much would income from operations increase for each company if the sales of each increased by If required, round answers to nearest whole number.
Dollars Percentage
Beck Inc. $fill in the blank
fill in the blank
Bryant Inc. $fill in the blank
fill in the blank
c The difference in the
of income from operations is due to the difference in the operating leverages. Beck Inc.s
operating leverage means that its fixed costs are a
percentage of contribution margin than are Bryant Inc.s
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