Operating Leverage

Beck Inc. and Bryant Inc. have the following operating data:

Beck Inc. Sales $260,500, Variable costs 104,500, Contribution margin $156,000, Fixed costs 104,000, Income from operations $52,000. Bryant Inc. sales: 834,000, Variable costs: 500,400, Contribution margin: 333,600, Fixed costs: 194,600, Income from operations: 139,000.

a.Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.

1. Beck Inc. fill in the blank
2. Bryant Inc. fill in the blank
3. 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.
4. Dollars Percentage Beck Inc. $fill in the blank
5. fill in the blank
6. % Bryant Inc. $fill in the blank
7. fill in the blank
8. % c.The difference in the of income from operations is due to the difference in the operating leverages. Beck Inc.'s operating leverage means that its fixed costs are a percentage of contribution margin than are Bryant Inc.'s.