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Just need B Answered: Operating Leverage Beck Inc. and Bryant Inc. have the following operating...

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Accounting

Just need B Answered:

Operating Leverage

Beck Inc. and Bryant Inc. have the following operating data:

Beck Inc. Bryant Inc.
Sales $290,900 $895,000
Variable costs 116,700 537,000
Contribution margin $174,200 $358,000
Fixed costs 107,200 179,000
Income from operations $67,000 $179,000

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

Beck Inc. 2.6
Bryant Inc. 2

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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