How much would income from operations increase for company

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

                                    Beck Inc.            Bryant Inc.

Sales                       $251,200              $750,000

Variable costs            100,800                 450,000

Contribution margin          $150,400            $300,000

Fixed costs                  103,400                    175,000

Income from operations         $47,000               $125,000

Problem 1: Compute the operating leverage for Beck Inc. and Bryant Inc.

Problem 2: How much would income from operations increase for each company if the sales of each increased by 10%? If required, round answers to nearest whole number.

Reference no: EM132962111

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