Business, 28.07.2020 19:01 mehokkj

Beck Inc. and Bryant Inc. have the following operating data:. Beck Inc. Bryant Inc.
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
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. $ %
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 Inc.'s.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 16:20, melanie687

Homestead jeans co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. monthly fixed costs are $54,000, and variable costs are $29 per unit. the present selling price is $42 per unit. on november 12 of the current year, the company received an offer from dawkins company for 18,000 units of the product at $32 each. dawkins company will market the units in a foreign country under its own brand name. the additional business is not expected to affect the domestic selling price or quantity of sales of homestead jeans co. a. prepare a differential analysis dated november 12 on whether to reject (alternative 1) or accept (alternative 2) the dawkins order. if an amount is zero, enter zero "0". for those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answers: 1

continue

Business, 22.06.2019 11:00, andregijoe41

Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?

Answers: 1

continue

Business, 22.06.2019 19:30, kraigstlistt

Each row in a database is a set of unique information called a(n) table. record. object. field.

Answers: 3

continue

Business, 22.06.2019 20:00, javonteoshamccaliste

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation

Answers: 2

continue

You know the right answer?

Beck Inc. and Bryant Inc. have the following operating data:. Beck Inc. Bryant Inc.
Sales $1,...