Beck Inc. Bryant Inc. Sales $190,400 $606,000 Variable costs 76,400 363,600 Contribution margin $114,000 $242,400 Fixed costs 76,000 141,400 Income from operations $38,000 $101,000 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. % 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.

Beck Inc. Bryant Inc. Sales $190,400 $606,000 Variable costs 76,400 363,600 Contribution margin $114,000 $242,400 Fixed costs 76,000 141,400 Income from operations $38,000 $101,000 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. Percentage Dollars Beck Inc. % Bryant Inc. % 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