Question
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $198,400 $504,000 Variable costs 79,600 302,400 Contribution
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $198,400 $504,000 Variable costs 79,600 302,400 Contribution margin $118,800 $201,600 Fixed costs Income from operations 64,800 $54,000 57,600 $144,000 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. Bryant Inc. c. The difference in the that its fixed costs are a Dollars 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 leverage means
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