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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 $213,800 $695,500
Variable costs 85,800417,300
Contribution margin $128,000 $278,200
Fixed costs 88,000171,200
Income from operations $40,000 $107,000
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 10%? 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
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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