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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $357,700 $1,008,000 Variable costs 143,500 604,800 Contribution margin
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
| Beck Inc. | Bryant Inc. | |||
| Sales | $357,700 | $1,008,000 | ||
| Variable costs | 143,500 | 604,800 | ||
| Contribution margin | $214,200 | $403,200 | ||
| Fixed costs | 151,200 | 235,200 | ||
| Income from operations | $63,000 | $168,000 | ||
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. | $_____ | ______% | |
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