Operating Leverage

Beck Inc. and Bryant Inc. have the following operating data:

Beck Inc. Bryant Inc.

Sales $$1,250,000$ $$2,000,000$

Variable 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. 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 operating income increase for each company if the sales of each increased by $20\%?$

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 $6$

$\%$