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Beck Inc. and Bryant Inc. have the following operating data: Sales Variable costs Contribution margin Fixed
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Beck Inc. and Bryant Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Income from operations Beck Inc. $200,400 80,400 $120,000 80,000 $40,000 Bryant Inc. $642,000 385,200 $256,800 149,800 $107,000 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 15% ? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. Bryant Inc. c. The difference in the leverage means that its fixed costs are a % 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. operating

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a Operating Leverage Operating Leverage measures the relationship between fixed costs and contributi View the full answer


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Financial and Managerial Accounting

Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Details
Chapter # 19- Cost Behavior and Cost-Volume-Profit Analysis
Section: Exercises
Problem: 25
Posted Date: September 30, 2023 04:29:44
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