Mahaxay Corporation has provided its contribution format income statement for April:
Sales $260,000
Variable expenses $176,000
Contribution margin $84,000
Fixed expenses $71,800
Net operating income $12,200
Compute the degree of operating leverage to two decimal places.
Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 10% increase in sales.
Using your answer from “b” above, compute operating income with a 10% increase in sales.
Mahaxay Corporation has provided its contribution format income statement for April: Sales $260,000 Variable expenses $176,000...
A Corporation has provided its contribution format income statement for August Sales $863,300 Variable expenses 424,200 Contribution margin 436,100 Fixed expenses 352,400 net operating income $83,700 a. Compute the degree of operating leverage to two decimal places. b. Using the degree of operating leverage, estimate the percentage in net operating income that should result from a 14% increase in sales.
3. Construct a new contribution format income statement for the company assuming a 18% increase in sales. Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% 60% Amount $ 132,000 52,800 79,200 20,000 $ 59,200 Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2....
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: $ Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount 140,000 56,000 84,000 17,000 67,000 Percent of Sales 100% 40% 60% $ Required: 1. Compute the company's degree of operating leverage. (Round your answer to 2 decimal Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 27% increase in...
Sattler Corporation has provided the following contribution format income statement All questions concern situations that are within the relevant range. Sales (8,000 units) $480,000 Variable expenses 336.000 Contribution margin 144,000 Fixed expenses 142.200 Net operating income $1.800 Required: a. What is the contribution margin per unit? (1 mark) b. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales? (1 mark) c. What is the break-even point in...
Omar Company prepared the following contribution format income statement based on 100,000 units of sales. Sales......... ...$3,000,000 Variable expenses. .1,800,000 Contribution margin... ..1,200,000 Fixed expenses.... ...900,000 Net operating income... 300,000 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net...
Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 140,000 56,000 84,000 16,000 $ 68,000 Percent of Sales 100% 40% tex Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 25% increase in sales. 3. Construct a new contribution format income statement...
Serfass Corporation's contribution format income statement for July appears below: Sales $353,800 Variable expenses 194,590 Contribution margin 159, 210 Fixed expenses 65,280 Net operating income $93,930 The degree of operating leverage is closest to: The degree of operating leverage is closest to: Multiple Cholce 0.27 0.59 222 1.69
Amount Percent of Sales Sales $137,000 100% Variable expenses 54,800 40% Contribution margin 82,200 60% Fixed expenses 17,700 Net Operating $65,200 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 12% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 12% increase in sales.
Serfass Corporation's contribution format income statement for July appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income $327,700 180,235 147,465 66,360 $ 81,105 The degree of operating leverage is closest to Multiple Choice
The following is XYZ’s contribution format income statement for last month: Sales $600,000 Variable expenses 400,000 Contribution margin 200,000 Fixed expenses 100,000 Net operating income $100,000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month. 1 What is the company's contribution margin ratio? 2 What is the company's contribution margin? 3 What is the company's break-even in units? 4 If sales increase by 200 units, by how much should net operating income...