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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $304,600 $912,000 Variable costs 122,200 547,200 Contribution margin

Operating Leverage

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

Beck Inc. Bryant Inc.
Sales $304,600 $912,000
Variable costs 122,200 547,200
Contribution margin $182,400 $364,800
Fixed costs 125,400 212,800
Income from operations $57,000 $152,000

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 income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.

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 %

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