Question: please help!! Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Variable costs Sales $153,600 $369,000 61,600 221,400
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Variable costs Sales $153,600 $369,000 61,600 221,400 Contribution margin $92,000 $147,600 Fixed costs 46,000 24,600 Income from operations $46,000 $123,000 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 increases of income from operations is due to the difference in the operating leverages. Beck Inc.'s higher operating leverage means that its fixed costs are a larger percentage of contribution margin than are Bryant Inc.'s
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