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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales Variable costs $247,200 99,200 $594,000 356,400 $237,600 Contribution
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales Variable costs $247,200 99,200 $594,000 356,400 $237,600 Contribution margin $148,000 Fixed costs 74,000 39,600 Income from operations $74,000 $198.000 .. Compute the operating leverage for Beck Int. 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 15%? If required, round answers to nearest whole number Dollars Percentage Beck Inc. Bryant Inc. 96 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
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