Head-First Company plans to sell 5,000 baseball bats at $75 each in the coming year. Unit...
Head-First Company plans to sell 5,000 baseball bats at $75 each in the coming year. Unit contribution margin is $25. Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,500.
The degree of operating leverage (rounded to the nearest tenth) is
Homework Answers
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Degree of operating leverage = Contribution margin /net operating income = (25*5000)/75,500 = 125,000/75,500 = 1.66 |
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Head-First Company
plans to sell 5,000 baseball bats at $75 each in the coming year.
Unit...
Head-First Company plans to sell 5,000 baseball bats at $75 each in the coming year. Unit...
Head-First Company plans to sell 5,000 baseball bats at $75 each in the coming year. Unit contribution margin is $25. Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,500. The degree of operating leverage (rounded to the nearest tenth) is
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $50 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,500. Required: Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicyde helmets at $75 each in...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicyde helmets at $75 each in the coming year. Unit variable cost is $50 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,500 Required: Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $100,500. Required: Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
QUESTION 1 Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75...
QUESTION 1 Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $100,500. Required: Calculate the degree of operating leverage. (Round your answer to the nearest tenth.) __________ QUESTION 2 Margin of...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $51 (includes direct materials, direct labour, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $70,500 Required: Calculate the degree of operating leverage. Round your answer to two decimal places.
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit...
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Break-even units equal 1,650. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales revenue. $
Head-First Company had planned to sell 5,000 bicycle helmets at $76 each in the coming year....
Head-First Company had planned to sell 5,000 bicycle helmets at $76 each in the coming year. Unit variable cost is $51 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,500. The degree of operating leverage is 1.7. Now Head-First expects to increase sales by 10% next year. Required: 1. Calculate the percent change in...
Break-Even Point in Units Head-First Company plans to sell 5,000 bicycle helmets at $75 each in...
Break-Even Point in Units Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $48 (includes direct materials, direct labour, variable factory overhead, and variable selling expense). Total fixed cost equals $69,390 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even number of helmets. If required, round your answer to the nearest whole unit and use rounded amount in subsequent requirements. helmets 2. Check your...
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product...
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials per helmet $ 30 Direct labor per helmet 8 Variable factory overhead per helmet 4 Total fixed factory overhead 20,000 Variable selling expense is a commission of $3 per helmet; fixed selling and administrative expense totals $29,500. Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin...
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicyde helmets at $75 each in the coming year. Unit variable cost is $50 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,500 Required: Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $100,500. Required: Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $51 (includes direct materials, direct labour, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $70,500 Required: Calculate the degree of operating leverage. Round your answer to two decimal places.
Break-Even Point in Units Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $48 (includes direct materials, direct labour, variable factory overhead, and variable selling expense). Total fixed cost equals $69,390 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even number of helmets. If required, round your answer to the nearest whole unit and use rounded amount in subsequent requirements. helmets 2. Check your...
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