Total contribution margin in dollars divided by pretax income is the: Select one: a. Degree of...
Total contribution margin in dollars divided by pretax income is the:
Select one: a. Degree of operating leverage. b. Contribution margin ratio. c. Margin of safety. d. Sales mix. e. Break-even point in units.
Homework Answers
a. Degree of operating leverage
Degree of operating leverage = Contribution margin in dollars divided by Pretax income
Explanation:
The formula to compute the degree of operating leverage is shown below:
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed costs)
We know generally,
(Sales - Variable costs) = Contribution margin
(Sales - Variable costs - Fixed costs) = EBIT i.e Pretax Income
Add Answer to:
Total contribution margin in dollars divided by pretax income is
the:
Select one: a. Degree of...
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ACC 2302 1. Ex.4-38.Algo Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of...
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1. Ex.4-38.Algo Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: 2. Ex.4-39.Algo Total 3. Pr.4-40.Algo Sales $ 12,150,000 7,290,000 Total variable cost Contribution margin $ 4,860,000 Total fixed cost 2,865,240 Operating income $ 1,994,760 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest...
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ACC 2302
1. Ex.4-38.Algo Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: 2. Ex.4-39.Algo Total 3. Pr.4-40.Algo Sales $ 12,150,000 7,290,000 Total variable cost Contribution margin $ 4,860,000 Total fixed cost 2,865,240 Operating income $ 1,994,760 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. per unit $ (b). Compute contribution...
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1. Ex.4-38.Algo Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: 2. Ex.4-39.Algo Total 3. Pr.4-40.Algo Sales $ 12,150,000 7,290,000 Total variable cost Contribution margin $ 4,860,000 Total fixed cost 2,865,240 Operating income $ 1,994,760 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent. $ 16.2...
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