Question
eBook Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $208,400 $640,000 Variable costs 83,600 384,000 Contribution
eBook
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $208,400 | $640,000 | ||
| Variable costs | 83,600 | 384,000 | ||
| Contribution margin | $124,800 | $256,000 | ||
| Fixed costs | 76,800 | 128,000 | ||
| Income from operations | $48,000 | $128,000 | ||
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 20%? 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 | % |
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ISE Managerial Accounting Creating Value In A Dynamic Business Environment
Authors: Ronald W. Hilton, David Platt
13th Edition
1265046794, 9781265046798
