Question
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $156,300 $468,000 Variable costs 62,700 280,800 Contribution margin
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $156,300 | $468,000 | ||
| Variable costs | 62,700 | 280,800 | ||
| Contribution margin | $93,600 | $187,200 | ||
| Fixed costs | 54,600 | 83,200 | ||
| Income from operations | $39,000 | $104,000 | ||
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 the nearest whole number.
| Dollars | Percentage | ||
| Beck Inc. | $ | % | |
| Bryant Inc. | $ | % | |
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Employee Relations Audits
Authors: C. Jennings, W. E. J. McCarthy, R. Undy
1st Edition
0415786614, 978-0415786614
