Just need B Answered: Operating Leverage Beck Inc. and Bryant Inc. have the following operating...

70.2K

Verified Solution

Question

Accounting

Just need B Answered:

Operating Leverage

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

Beck Inc. Bryant Inc.
Sales $290,900 $895,000
Variable costs 116,700 537,000
Contribution margin $174,200 $358,000
Fixed costs 107,200 179,000
Income from operations $67,000 $179,000

a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.

Beck Inc. 2.6
Bryant Inc. 2

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. $ %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students