Operating leverage   Beck Inc. and Bryant Inc.have the following operating  data:       Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable costs 750,000 1,250,000 Contribution margin   $500,000   $ 750,000 Fixed costs 400,000 450,000 Income from operations   $ 100,000   $300,000   a.Compute the operating leverage for Beck Inc.and Bryant Inc. b.How much would income from operations increase for each company if the sales of each increased by 20%? c.Why is there a difference in the increase in income from operations for the two companies? Explain.

Operating Leverage Cartersville Co. reports the following data: Sales $455,200  Variable costs (250,400) Contribution margin $204,800  Fixed costs (146,300) Operating income $58,500  Determine Cartersville Co.’s operating leverage. Round your answer to one decimal place.

Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $275,600 $882,000 Variable costs 110,600 529,200 Contribution margin $165,000 $352,800 Fixed costs 110,000 205,800 Income from operations $55,000 $147,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Вeck Inc. Bryant Inc. 2.4 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 Вeck Inc. $ 33,000 60 V % Bryant Inc. 70,560 57 X % c. The difference in the increases of income from operations is due to the difference in the operating leverages. Beck Inc.'s higher v operating leverage means that its fixed costs are a larger percentage of contribution margin than are Bryant Inc.'s.

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