Question
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $285,600 $836,000 Variable costs 114,600 501,600 Contribution margin $171,000 $334,400
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $285,600 | $836,000 | ||
| Variable costs | 114,600 | 501,600 | ||
| Contribution margin | $171,000 | $334,400 | ||
| Fixed costs | 114,000 | 182,400 | ||
| 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. | |
| Bryant Inc. |
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. | $ | % | |
| Bryant Inc. | $ | % | |
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Financial Statement Fraud Strategies For Detection And Investigation
Authors: Gerard M. Zack
1st Edition
1118301552, 9781118301555
