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

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Juras Inc. and Hinson Inc. have the following operatingdata:

Sales 160,000 215,000

Variablecosts 130,000 115,000

Contributionmargin 30,000 100,000

Fixedcosts 20,000 75,000

Income fromoperations 10,000 25,000

Compute the operating leverage for Juras Inc. andHinson Inc.
How much would income from operations increase for eachcompany if the sales of each increased by 10%?
Why is there a difference in the increase in incomefrom operations for the two companies? Explain.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9992495

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