v Operating Leverage Beck Inc. and Bryant Inc. have the following...
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Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $265,500 $781,000 Variable costs 106,500 469,600 Contribution margin $159,000 $312,400 Fixed costs 106,000 170,400 Income from operations $53,000 $142,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. 3.0 Bryant Inc. 2.2 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 V percentage of contribution margin than are Bryant Inc.'s. %
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