< eBook Operating Leverage: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. $247,800 $710,000 (99,400) (426,000) $148,400 $284,000 (95,400) (142,000) $53,000 $142,000 Sales Variable costs Contribution margin. Fixed costs Operating income 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 operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Percentage Beck Inc. Dollars Bryant Inc. c. The difference in the leverage means that its fixed costs are a % Check My Work 2 more Check My Work uses remaining. % of operating income is due to the difference in the operating leverages. Beck Inc.'s percentage of contribution margin than are Bryant Inc.'s. operating Previous

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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takeAssignment/take AssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false
<
eBook
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
Beck Inc. Bryant Inc.
$247,800 $710,000
(99,400) (426,000)
$148,400 $284,000
(95,400) (142,000)
$142,000
$53,000
Sales
Variable costs
Contribution margin
Fixed costs
Operating income
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 operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.
Percentage
Beck Inc.
Bryant Inc.
LA
Dollars
10
4
c. The difference in the
leverage means that its fixed costs are a
%
Check My Work 2 more Check My Work uses remaining.
%
of operating income is due to the difference in the operating leverages. Beck Inc.'s
percentage of contribution margin than are Bryant Inc.'s.
6 x 06
operating
Previous
Transcribed Image Text:takeAssignment/take AssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false < eBook Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. $247,800 $710,000 (99,400) (426,000) $148,400 $284,000 (95,400) (142,000) $142,000 $53,000 Sales Variable costs Contribution margin Fixed costs Operating income 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 operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Percentage Beck Inc. Bryant Inc. LA Dollars 10 4 c. The difference in the leverage means that its fixed costs are a % Check My Work 2 more Check My Work uses remaining. % of operating income is due to the difference in the operating leverages. Beck Inc.'s percentage of contribution margin than are Bryant Inc.'s. 6 x 06 operating Previous
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