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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $130,300 $364,000 Variable costs 52,300 218,400 Contribution
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $130,300 $364,000 Variable costs 52,300 218,400 Contribution margin $78,000 $145,600 Fixed costs 39,000 41,600 Income from operations $39,000 $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 10%? If required, round answers to nearest whole number. Beck Inc. Bryant Inc. $ Dollars Percentage % %
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