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Please help, what are the answers to this question? Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc.

Please help, what are the answers to this question?

Operating Leverage

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

Beck Inc. Bryant Inc.
Sales $425,900 $1,200,000
Variable costs 170,900 720,000
Contribution margin $255,000 $480,000
Fixed costs 180,000 280,000
Income from operations $75,000 $200,000

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 20%? 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 ________ operating leverage means that its fixed costs are a __________ percentage of contribution margin than are Bryant Inc.'s.

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