Why is there a difference in the increase in income, Accounting Basics

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Why is there a difference in the increase in income

Uras Inc. and Hinson Inc. have the following operating data: Sales Juras $160,000 HInson $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 Hinson Inc. (b) How much would income from operations increase for each company if the sales of each increased by 10% (c) Why is there a difference in the increase in income from operations for the two companies? Explain.

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Accounting Basics: Why is there a difference in the increase in income

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Accounting Basics: Why is there a difference in the increase in income

Reference No:- TGS0711609

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : How to compute the anticipated break-even sales

Q : What cost and benefits might be associated with a switch

Q : Calculate the amount of inventory loss from the flood

Q : Determine the total stockholders'' equity reported

Q : Why is there a difference in the increase in income

Q : Transactions occurred and were recorded

Q : Calculate the pension expense

Q : Karnes will incur special shipping costs

Q : What amount should be included in the current liabilities

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Why is there a difference in the increase in income

Reference No:- TGS0711609

Recent Questions Asked Accounting Basics

Q : How to compute the anticipated break-even sales

Q : What cost and benefits might be associated with a switch

Q : Calculate the amount of inventory loss from the flood

Q : Determine the total stockholders'' equity reported

Q : Why is there a difference in the increase in income

Q : Transactions occurred and were recorded

Q : Calculate the pension expense

Q : Karnes will incur special shipping costs

Q : What amount should be included in the current liabilities

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