Operating Leverage

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

Beck Inc.Bryant Inc.Sales$251,200$750,000Variable costs100,800450,000Contribution margin$150,400$300,000Fixed costs103,400175,000Income from operations$47,000$125,000

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 income from operations increase for each company if the sales of each increased by 10%? If required, round answers to nearest whole number.

DollarsPercentageBeck Inc.$fill in the blank 3

fill in the blank 4

%Bryant Inc.$fill in the blank 5

fill in the blank 6

%

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.

CengageNOWv2 | Online teachin X Course Hero X P ) My Collection - Stations - Pc x + X C @ https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false . . Ch. 21, Quiz B Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $251,200 $750,000 Variable costs 100,800 450,000 Contribution margin $150,400 $300,000 Fixed costs 103,400 175,000 Income from operations $47,000 $125,000 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. Dollars Percentage Beck Inc. % Bryant Inc. c. The difference in the of income from operations is due to the difference in the operating leverages. Beck Inc.'s V operating leverage means that its fixed costs are a percentage of contribution margin than are Bryant Inc.'s. Type here to search O 8:13 PM 85OF 8/7/2021 27