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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. 5168,300 $392,000 Sales Variable costs Contribution margin 67,500 235,200
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. 5168,300 $392,000 Sales Variable costs Contribution margin 67,500 235,200 $100,800 $156,800 Fixed costs 58,800 44,800 Income from operations $42,000 $112,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. 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 nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. % operating leverage means that its fixed costs are a 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
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