Homework Answers
Contribution margin
= Sales - Variable costs
= (1000*50) - (1000*50*40%)
= 30,000
Net operating income = Contribution margin - Fixed cost
= 30,000-20,000 = 10,000
Operating leverage = Contribution margin/Net operating income
= 30,000/10,000
= 3.00
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Brown Corporation has sales of 1,000 units at $50 per unit Variable expenses are 40% of...
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Derst Incorporated sells a particular textbook for $25. Variable expenses are $13 per book. At the current volume of 42,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total: Multiple Choice $546,000 $1,050,000 $504,000 $1,554,000 Bristo Corporation has sales of 1,600 units at $50 per unit. Variable expenses are 35% of the selling price. If total fixed expenses are $42,000, the degree of operating leverage is: Multiple...
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