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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $224,400 $616,000 Variable costs 90,000 369,600 Contribution

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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $224,400 $616,000 Variable costs 90,000 369,600 Contribution margin $134,400 $246,400 Fixed costs Income from operations 92,400 $42,000 134,400 $112,000 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 income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Beck Inc. Dollars Bryant Inc. c. The difference in the leverage means that its fixed costs are al Percentage % of income from operations is due to the difference in the operating leverages. Beck Inc.'s) percentage of contribution margin than are Bryant Inc.'s. operating

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