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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. $221,400 $676,000 (88,800) (405,600) Sales Variable costs Contribution margin
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. $221,400 $676,000 (88,800) (405,600) Sales Variable costs Contribution margin $132,600 $270,400 Fixed costs (93,600) (166,400) Operating income $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 operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Beck Inc. Bryant Inc. Dollars Percentage c. The difference in the increases means that its fixed costs are a larger. of operating income is due to the difference in the operating leverages. Beck Inc.'s higher percentage of contribution margin than are Bryant Inc.'s. operating leverage
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