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.essnon ocatorzrmprogressiaise Operating Leverage Beck Inc. and Bryant Inc. have the follnwmg operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variabie costs (750,000) (1,250,000)

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.essnon ocatorzrmprogressiaise Operating Leverage Beck Inc. and Bryant Inc. have the follnwmg operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variabie costs (750,000) (1,250,000) Contribution margin $500,000 $750,000 Fixed costs (400,000) (450,000) Operating income $100,000 $300,000 a. Compute the Operating leverage for Beck Inc. and Bryant Inc. 11 required, round to one decimal place. Bryant inc. D b. How much would operating income increase for each company If the sales of each increased by 20%? Dollars Percentage Beck Inc. Bryant Inc. c. The difference in the \" of operating Income 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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