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

a. Compute the operating leverage for Beck Inc. and Bryant Inc.
b. How much would income from operations increase for each company if the sales of each increased by 20%?
c. Why is there a difference in the increase in income from operations for the two companies?Explain.

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Sales Variable costs Contribution margin Fixed cost: Income from operations Beck In. Bryant Inc. $1,250,000 2,000,000 1,250,000 S500,000 750,000 150,000 100,000 300,000 750,000 100,000