Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $240,500 $576,000 Variable costs 96,500 345,600 Contribution margin

Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $240,500 $576,000 Variable costs 96,500 345,600 Contribution margin $144,000 $230,400 Fixed costs 72,000 38,400 Income from operations $72,000 $192,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. fill in the blank 1 Bryant Inc. fill in the blank 2 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. $fill in the blank 3 fill in the blank 4 % Bryant Inc. $fill in the blank 5 fill in the blank 6 % c. The difference in the   of income from operations is due to the difference in the operating leverages. Beck Inc.’s   operating leverage means that its fixed costs are a   percentage of contribution margin than are Bryant Inc.’s.

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