Question: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $315,300 $1,027,000 Variable costs 126,500 616,200 Contribution margin

Operating Leverage

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

	Beck Inc.	Bryant Inc.
Sales	$315,300	$1,027,000
Variable costs	126,500	616,200
Contribution margin	$188,800	$410,800
Fixed costs	129,800	252,800
Income from operations	$59,000	$158,000

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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