(1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of income will Singh Co. expect?

SS

The following CVP income statements are available for Wildhorse Corp. and Blossom, Inc. Wildhorse Corp. Blossom, Inc. Sales revenue $854,000 $854,000 * Variable costs 396,500 228,750 Contribution margin 457,500 625,250 Fixed costs 305,000 472,750 Net income $152,500 $152,500 (a) Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) Degree of Operating Leverage Wildhorse Blossom

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. $   %

Company A has current sales of $10,717,172 and a 43% contribution margin. Its fixed costs are $2,370,653. Company B is a service firm with current service revenue of $5,488,617 and a 19% contribution margin. Company B’s fixed costs are $597,932. Compute the degree of operating leverage for Company B if there was a 12% increase in revenue. Round to the hundredth, two decimals.

am. 122.

The Tom Company reports the following data. Sales $181,203 Variable costs 94,503 Fixed costs 35,700 Determine Tom Company's operating leverage. Round your answer to one decimal place.