Question
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $182,400 $572,000 Variable costs 73,200 343,200 Contribution
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $182,400 $572,000 Variable costs 73,200 343,200 Contribution margin $109,200 $228,800 Fixed costs Income from operations 70,200 $39,000 124,800 $104,000 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 15%? If required, round answers to nearest whole number. Beck Inc. Dollars Bryant Inc. c. The difference in the operating 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
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