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Just need B Answered: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $290,900 $895,000 Variable costs
Just need B Answered:
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $290,900 | $895,000 | ||
| Variable costs | 116,700 | 537,000 | ||
| Contribution margin | $174,200 | $358,000 | ||
| Fixed costs | 107,200 | 179,000 | ||
| Income from operations | $67,000 | $179,000 | ||
a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.
| Beck Inc. | 2.6 |
| Bryant Inc. | 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. | $ | % | |
| Bryant Inc. | $ | % | |
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