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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $225,500 $600,000 Variable costs (90,500) (360,000) Contribution margin

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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $225,500 $600,000 Variable costs (90,500) (360,000) Contribution margin $135,000 (90,000) $240,000 (120,000) Fixed costs Operating income $45,000 $120,000 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 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. Bryant Inc. % operating C. The difference in the leverage means that its fixed costs are a of operating income is due to the difference in the operating leverages. Beck Inc.'s percentage of contribution margin than are Bryant Inc.'s

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