Question

Problem 3.52 Elina Siljander owns Elinas Stained Glass in Helsinki, Finland. The business produces and sells three differentX Your answer is incorrect. Try again. Calculate Elinas degree of operating leverage for September. (Round to 2 decimal placWhat are the correct answers?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

ANSWER

Part 1

Cost function: total cost = €6771 + 28% of total revenue

Raw materials are variable = 4029/16116 = 25%

Labor and rent are fixed

Miscellaneous using regression analysis comes to 289 fixed and 3% variable

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.873015

R Square

0.762156

Adjusted R Square

0.643234

Standard Error

69.9928

Observations

4

ANOVA

df

SS

MS

F

Significance F

Regression

1

31397.01

31397.01

6.408871

0.126985

Residual

2

9797.985

4898.993

Total

3

41,195

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

288.5315

162.9787

1.770363

0.218684

-412.709

989.7724

-412.709

989.7724

X Variable 1

0.033137

0.013089

2.531575

0.126985

-0.02318

0.089456

-0.02318

0.089456

Part 2

Revenue = fixed expense + profit / contribution margin ratio = (6771+10000)/(1-0.28) = $23,293

Part 3

Degree of operating leverage = contribution margin / profit = (16116*(1-0.28))/4812 = 2.41

__________________________________

If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.

*****************THANK YOU*************

Add a comment
Know the answer?
Add Answer to:
What are the correct answers? Problem 3.52 Elina Siljander owns Elina's Stained Glass in Helsinki, Finland....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Problem 3.52 Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells...

    Problem 3.52 Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells three different types of stained glass windows: small, medium, and large. Elina has two full-time employees who work regular schedules to cut glass and assemble the windows. She borrowed money from the bank to start the business and pay living expenses. She is concerned that her cash flows might not be high enough either to pay herself or to repay the bank loan. She...

  • Problem 3.52 Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells...

    Problem 3.52 Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells three different types of stained glass windows: small, medium, and large. Elina has two full-time employees who work regular schedules to cut glass and assemble the windows. She borrowed money from the bank to start the business and pay living expenses. She is concerned that her cash flows might not be high enough either to pay herself or to repay the bank loan. She...

  • Problem 3.52 Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells...

    Problem 3.52 Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells three different types of stained glass windows: small, medium, and large. Elina has two full-time employees who work regular schedules to cut glass and assemble the windows. She borrowed money from the bank to start the business and pay living expenses. She is concerned that her cash flows might not be high enough either to pay herself or to repay the bank loan. She...

  • Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells three different...

    Elina Siljander owns Elina's Stained Glass in Helsinki, Finland. The business produces and sells three different types of stained glass windows: small, medium, and large Elina has two full-time employees who work regular schedules to cut glass and assemble the windows. She borrowed money from the bank to start the business and pay living expenses. She is concerned that her cash flows might not be high enough either to pay herself or to repay the bank loan. She would like...

  • What are the correct answers for the ones I got wrong?? Exercise 3.27 Stellar produces one...

    What are the correct answers for the ones I got wrong?? Exercise 3.27 Stellar produces one single product, a small reading tablet, and sells it at $130 per unit. Its current annual sales are $312,000. Its annual fixed costs include factory rent, 562,400; depreciation expense; equipment, $15,600; utilities, $31,200; insurance, $12,480. Its variable costs include materials, $39 per unit, and direct labour, $52 per unit. Stellar's income tax rate is 20%. Your answer is correct. What is the contribution margin...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT