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

Q: Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Snellville Co. reports the following data: Sales   $687,100 Variable costs   474,100 Contribution…

A: Operating leverage = Contribution margin/Net operating income

Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $275,600…

A: From the provided image only Part B is incorrect , we are answering only part B.

Q: Income statements for two different companies in the same industry are as follows:…

A: Answer 1) Calculation of Degree of Operating Leverage Degree of Operating Leverage = Operating…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $355,700…

A: Operating leverage formula:-

Q: Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the…

A: Net income = Contribution margin - Fixed costs = $960,000 - $720,000 = $240,000

Q: The following sales and cost data (in thousands) are for two companies in the transportation…

A: The degree of operating leverage is used to measure how much operating income is sensitive to sales.…

Q: Spring Company’s cost structure is dominated by variable costs with a contribution margin ratio of…

A: Fixed cost means the cost which do not vary with the level of output. Variable cost means the cost…

Q: n income statement for Howell Company: Sales $600,000 Variable costs (150,000) Contribution margin…

A: Margin of safety is the excess sales over break even sales. Margin of Safety = Actual Sales Revenue…

Q: Are operating leverage Beck Inc. and Bryant Inc. have the following operating data back Inc. sales…

A: Operating Leverage: It's a metric for determining how resilient net operating income is to a jump in…

Q: Company A is a manufacturer with sales of $6,000,000 and a 60% contribution margin. Its fixed costs…

A: The degree of operating leverage (DOL) is a multiple that measures how much the operating income of…

Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $315,600…

A: Formula: Percentage of change in profit = Degree of operating leverage x Increase in sales %

Q: Ionic Charge is a newly organized manufacturing business that plans to manufacture and sell 60,000…

A:

Q: Marcus Corporation currently sells 150,000 units of products a year at a price of RM 4.00 per unit.…

A: The degree of operational leverage (DOL) is a ratio that determines how a company's operating income…

Q: Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics:…

A: Return In Investment= Net Income / Investment Net Income= Contribution Margin - Fixed Expenses…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $346,400…

A: Operating leverage is calculated as contribution margin divided by operating income.

Q: Operating Leverage Income statements for two different companies in the same industry are as…

A: Degree of operating leverage is calculated as: = Contribution Margin / Operating Income Break - even…

Q: The Hammer Company has the following cost structure: fixed costs of Birr 70,000 per month and…

A: Contribution per unit= Sales- variable cost per unit Profit= (Sales per unit- variable cost per…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $238,500…

A: Degree of Operating leverage: It is a financial ratio. Sensitivity of operating income to sales is…

Q: (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of…

A: Contribution is usually defined as Sales minus the variable costs of an organization The degree of…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $290,900…

A: Degree of operating leverage (DOL): DOL Reflects an organization's variable and fixed cost…

Q: The management estimates that the following costs and activity would be associated with the…

A: Absorption Costing Approach: In manufacturing, absorption costing is a method of costing that…

Q: The following information is available about the status and operations of Big Shot Corp., which has…

A: SOLUTION- THE RESIDUAL INCOME AND RETURN ON INCOME ARE RELATED TO EACH OTHER . THE ROI AT 15% WOULD…

Q: Operating Leverage Income statements for two different companies in the same industry are as…

A:

Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000…

A: Beak Inc. Bryant Inc. Sales $12,50,000 $20,00,000 Variable costs -$7,50,000 -$12,50,000…

Q: a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal…

A: Leverage can be commonly measured into 3 kinds, namely Operating Leverage (OL) Financing Leverage…

Q: The statement of comprehensive income of Blanche Company for the current year is presented below…

A: Degree of operating leverage in the business shows how much operating income or income before taxes…

Q: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant…

A: Operating leverage is a cost-accounting formula that determines how much a company or project can…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $326,000…

A: Operating leverage: It is calculated by dividing the contribution margin by the operating income of…

Q: 1. Compute the degree of operating leverage for each company. Trimax ? Quintex ? 2. Compute the…

A: 1.  Trimax 120,000/30,000 4 Quintex 240,000/30,000 8 2.  Trimax, Inc. 90,000/50% 180,000…

Q: Based on the income statements shown below, which division has the cost structure with the highest…

A: FORMULA FOR OPERATING LEVERAGE - operating leverage = contribution margin / net operating income

Q: Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit and a contribution…

A: Requirement a:

Q: Adams, Inc. has sales of $100,000 with contribution a contribution margin of $60,000 and net income…

A: What is meant by Contribution Margin? Contribution is nothing but the difference between sales…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $341,300…

A: Operating leverage is the measure of change in net income of the company with respect to change in…

Q: Channing Company has two divisions, S and T. The company's overall contribution margin ratio is 30%…

A: If Contribution margin ratio  = 25% Then variable cost = 100-25 = 75%

Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $275,600…

A: The operating leverage is calculated as contribution margin divided by operating income.

Q: Company's sales are ₱600,000, its fixed expenses are ₱150,000, and its variable expenses are 60% of…

A: Solution: Degree of operating leverage is contribution margin divided by operating income.

Q: Use the below information to answer the following question.           Sales (1,000 units) $…

A: The degree of financial leverage (DFL) is a leverage ratio that determines how sensitive a…

Q: Below is an income statement for Howell Company: Sales $600,000 Variable costs (150,000)…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

Q: Use the below information to answer the following question. Sales (1,000 units) $200,000 110,000…

A: The formula used  BEP = FC/CMPU Where, BEP = Break-even point FC = Fixed cost CMPU = Contribution…

Q: .  Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal…

A:

Q: Harley Company has sales of $500,000, variable costs are 75% of sales, and income from operations is…

A: Operating leverage is a method of measuring the degree to which a firm can increase its operating…

Q: Maverick Technologies has sales of $3,000,000.  The company’s fixed operating costs total $500,000…

A: Degree of financial leverage (DFL) = Earnings before interest and tax / earnings before tax

Q: Operating leverage   Beck Inc. and Bryant Inc.have the following operating  data:       Beck…

A: Operating leverage is the one that is calculated to measure the level to which the income can be…

Q: Information concerning a company's products is as follows: Sales, $300,000; Variable costs,…

A: Answer) Calculation of Net Operating Income if Sales is $ 375,000 Net operating Income = (Sales X…

Q: Bulldogs Inc. has sales of P4,500,000, variable costs equal 75% of sales, and a fixed interest costs…

A: Sales = P4,500,000 Variable cost = 75% Contribution = Sales*(1-Variable cost ratio)…

Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $330,700…

A: Operating leverage is used by the organization to determine its break-even point. It helps the…