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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. $304,600 122,200 $182,400 125,400 $57,000 Bryant Inc. $836,000 501,600 $334,400 182,400
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. $304,600 122,200 $182,400 125,400 $57,000 Bryant Inc. $836,000 501,600 $334,400 182,400 $152,000 Sales Variable costs Contribution margin Fixed costs Income from operations a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place Beck Ind 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 Ind Bryant Inc. c. The difference in the of income from operations 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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