Answer:
Beck Inc. and Bryant Inc.
                                          Beck Inc.       Bryant Inc. 
a. Operating leverage          0.4                     0.1
b. Increase in income     $19,710 (27%)   $35,100 (18%)
c. The difference in the INCREASE of income from operations is due to the difference in the operating leverages. Beck Inc.'s HIGHER operating leverage means that its fixed costs are a HIGHER percentage of contribution margin than are Bryant Inc.'s.
Explanation:
a) Data and Calculations:
                                            Beck Inc.       Bryant Inc. 
Sales                                $219,400         $585,000 
Variable costs                     88,000            351,000 
Contribution margin        $131,400         $234,000 
Fixed costs                         58,400             39,000 
Income from operations $73,000          $195,000
Total costs                     $146,400         $390,000
Operating leverage             1.8                     1.2
Operating leverage = Contribution Margin/Income from operations
Increase in Sales by 15%
                                            Beck Inc.       Bryant Inc. 
Sales                                 $252,310         $672,750 
Variable costs                     101,200           403,650 
Contribution margin          $151,110          $269,100 
Fixed costs                         58,400              39,000 
Income from operations  $92,710          $230,100
Increase in income           $19,710 (27%)   $35,100 18%