Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate...

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Question

Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate...

Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate is 40%. Calculate the operating leverage of the company.

		1.11 times
		0.80 times
		1.80 times
		3.00 times

business accounting

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Answer 1

Answer #1

Contribution margin = Sales - Variable costs

= 380,000 - 200,000 =180,000

Operating income = Contribution margin - Fixed cost

= 180,000 - 80,000 = 100,000

Degree of operating leverage = Contribution margin /Operating income

= 180,000/100,000

= 1.8 times

Option C is the answer

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Answer 2

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Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate...

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Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate...

Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate...

Sales of Blistre Autos are 400,000, variable cost is 250,000, fixed cost is 90,000 tax rate...

If the contribution margin ratio is 0.40, targeted operating income is $95,000, and targeted sales volume...

If sales equal $300,000, variable expenses equal $200,000, and fixed expenses equal $80,000, then the degree...

Firm A Firm B units Price Variable Cost Fixed Costs Interest Expense Tax Rate 200.00 300.00...

A store will cost $925,000 to open. Variable costs will be 40% of sales and fixed...

Integrative Multiple leverage measures Play-More Toys produces inflatable beach balls, selling 380,000 balls per year. Each...

A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed...

A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed...

Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate...

Homework Answers

Add Answer to: Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate...

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Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate...