Question

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

perating Leverage

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

Beck Inc. Bryant Inc.
Sales $341,300 $975,000
Variable costs 136,900 585,000
Contribution margin $204,400 $390,000
Fixed costs 131,400 195,000
Income from operations $73,000 $195,000

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 15%? If required, round answers to nearest whole number.

Dollars Percentage
Beck Inc. $ %
Bryant Inc. $ %

c. The difference in the   of income from operations is due to the difference in the operating leverages. Beck Inc.'s   operating leverage means that its fixed costs are a   percentage of contribution margin than are Bryant

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc....
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $336,700 $975,000 Variable costs 135,100 585,000 Contribution margin $201,600 $390,000 Fixed costs 145,600 240,000 Income from operations $56,000 $150,000 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 10%? If required, round...
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc....
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $395,500 $1,188,000 Variable costs 158,700 712,800 Contribution margin $236,800 $475,200 Fixed costs 162,800 277,200 Income from operations $74,000 $198,000 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 15%? If required, round...
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc....
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $238,500 $672,000 Variable costs 95,700 403,200 Contribution margin $142,800 $268,800 Fixed costs 100,800 156,800 Income from operations $42,000 $112,000 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...
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $278,200...
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $278,200 $786,000 Variable costs 111,600 471,600 Contribution margin $166,600 $314,400 Fixed costs 117,600 183,400 Income from operations $49,000 $131,000 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 10%? If required, round answers to...
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $182,400...
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $182,400 $468,000 Variable costs 73,200 280,800 Contribution margin $109,200 $187,200 Fixed costs 70,200 83,200 Income from operations $39,000 $104,000 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 10%? If required, round answers to...
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data:  Beck Inc.Bryant Inc.Sales$312,600 $768,000 Variable costs125,400 460,800Contribution...
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data:  Beck Inc.Bryant Inc.Sales$312,600 $768,000 Variable costs125,400 460,800Contribution margin$187,200 $307,200 Fixed costs115,200 115,200Income from operations$72,000 $192,000  a.  Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc.Bryant Inc. b.  How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.  DollarsPercentageBeck Inc.$%Bryant Inc.$% c.  The difference in the   of income from operations is...
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $222,400...
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $222,400 $594,000 Variable costs (89,200) (356,400) Contribution margin $133,200 $237,600 Fixed costs (59,200) (39,600) Operating income $74,000 $198,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would operating income increase for each company if the sales of each increased by 10%? If required, round answers to nearest whole...
Beck Ltd and Bryant Ltd have the following operating data: Beck Ltd ($) Bryant Ltd ($)...
Beck Ltd and Bryant Ltd have the following operating data: Beck Ltd ($) Bryant Ltd ($) 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 Required: What is the operating leverage for Beck Ltd and Bryant Ltd? If the sales of each company increased by 20%, how much would income from operations increase for each company? Why is there a difference in the increase in income from operations for...
Varner Inc. and King Inc. have the following operating data: Varner Inc. King Inc. Sales $379,400...
Varner Inc. and King Inc. have the following operating data: Varner Inc. King Inc. Sales $379,400 $1,235,000 Variable costs 152,200 741,000 Contribution margin $227,200 $494,000 Fixed costs 156,200 304,000 Income from operations $71,000 $190,000 a. Compute the operating leverage for Varner Inc. and King Inc. If required, round to one decimal place. Varner Inc. King Inc. b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to...
Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax,...
Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. Sales $300,000     $337,500     Less: Variable costs 150,000     67,500        Contribution margin $150,000     $270,000     Less: Fixed costs 120,000     240,000        Operating income $30,000     $30,000     Required: 1. Compute the degree of operating leverage for each company. Trimax Quintex 2. Compute the break-even point in dollars for each company. Trimax, Inc. $ Quintex, Inc. $ Why is the break-even point for Quintex, Inc., higher? 3. Suppose...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT