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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $396,800 $1,144,000 Variable costs 159,200 686,400 Contribution

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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $396,800 $1,144,000 Variable costs 159,200 686,400 Contribution margin $237,600 $457,600 Fixed costs 171,600 281,600 Income from operations $66,000 $176,000 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. Dollars Percentage % Bryant Inc. % c. The difference in the 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 that its fixed costs are a

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