Question
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $288,600 $936,000 Variable costs (115,800) (561,600) Contribution margin
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $288,600 | $936,000 | ||
| Variable costs | (115,800) | (561,600) | ||
| Contribution margin | $172,800 | $374,400 | ||
| Fixed costs | (118,800) | (230,400) | ||
| Operating income | $54,000 | $144,000 | ||
a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.
| Beck Inc. | fill in the blank 1 |
| Bryant Inc. | fill in the blank 2 |
b. How much would operating income increase for each company if the sales of each increased by 10%? If required, round answers to nearest whole number.
| Dollars | Percentage | ||
| Beck Inc. | $fill in the blank 3 | fill in the blank 4 | % |
| Bryant Inc. | $fill in the blank 5 | fill in the blank 6 | % |
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
3rd edition
132890542, 978-0132890540
