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

Q: Just need B Answered: Operating Leverage Beck Inc. and Bryant Inc. have the foll

PART B Dollars Percentage Beck Inc $34,840 ($67,000 x 52%) 52% (2.60 x 20%) Bryant Inc $71,600 ($1,79,000 x 40%) 40% (2 x 20%) . . . . . ALL THE BEST !!! Dollars Percentage Beck Inc $34,840 ($67,000 x 52%) 52% (2.60 x 20%) Bryant Inc $71,600 ($1,79,000 x 40%) 40% (2 x 20%)

ID: 2508226 • Letter: J

Question

Just need B Answered:

Operating Leverage

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

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

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.

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

Explanation / Answer

PART B

Dollars

Percentage

Beck Inc

$34,840

($67,000 x 52%)

52%

(2.60 x 20%)

Bryant Inc

$71,600

($1,79,000 x 40%)

40%

(2 x 20%)

ALL THE BEST !!!