Question
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $204,100 $625,000 Variable costs 81,900 375,000 Contribution margin
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $204,100 | $625,000 | ||
| Variable costs | 81,900 | 375,000 | ||
| Contribution margin | $122,200 | $250,000 | ||
| Fixed costs | 75,200 | 125,000 | ||
| Income from operations | $47,000 | $125,000 | ||
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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Standard For Auditing Computer Applications
Authors: Martin A. Krist
2nd Edition
0849399831, 978-0849399831
