Question
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $215,100 $676,500 Variable costs 86,300 405,900 Contribution margin $128,800 $270,600
Beck Inc. and Bryant Inc. have the following operating data:
Beck Inc. Bryant Inc.
Sales $215,100 $676,500
Variable costs 86,300 405,900
Contribution margin $128,800 $270,600
Fixed costs 82,800 147,600
Income from operations $46,000 $123,000
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 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. $_______ %_______ Bryant Inc. $________ %_______
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