FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Beck Inc. and Bryant Inc. have the following operating data:
Beck Inc. | Bryant Inc. | |||
Sales | $374,700 | $1,056,000 | ||
Variable costs | 150,300 | 633,600 | ||
Contribution margin | $224,400 | $422,400 | ||
Fixed costs | 158,400 | 246,400 | ||
Income from operations | $66,000 | $176,000 |
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 20%? If required, round answers to nearest whole number.
Dollars | Percentage | ||
Beck Inc. | $ | % | |
Bryant Inc. | $ | % |
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