.  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.

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter7: Cost-volume-profit Analysis
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Problem 63P
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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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