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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $321,300 $792,000 Variable costs 128,900 475,200 Contribution
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $321,300 $792,000 Variable costs 128,900 475,200 Contribution margin $192,400 $316,800 Fixed costs 118,400 118,800 Income from operations $74,000 $198,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. A 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. Dollars Percentage % % of income from operations is due to the difference in the operating leverages. Beck Inc.'s higher percentage of contribution margin than are Bryant fecs c. The difference in the Increases operating leverage means that its fixed costs are a larger
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