Juras inc and hinson inc have the following operating, Ask an Expert

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Juras Inc. and Hinson Inc. have the following Operating Data:

Juras Hinson

Sales $160,000 $215,000

Variable Costs 130,000 115,000

Contribution Margin $30,000 $100.000

Fixed Costs 20,000 75,000

Income from Operations $10,000 $ 25,000

a. Compute the operating leverage for Juras Inc. and HinsonInc.

b. How much would income from operations increase for each companyif the sales of each increased by 10%??

c. Why is there a difference in the increase in income fromoperations for the two companies? Explain.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797411

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