The following information relates to FCG Company: Degree of operating leverage 4 Margin of safety $25,000...
The following information relates to FCG Company:
| Degree of operating leverage | 4 |
| Margin of safety | $25,000 |
| Margin of safety percentage | 25% |
| Contribution margin ratio | 40% |
1. If FCG's sales increase by 10%, by what percentage will its net operating income increase?
2. FCG wants to give its only salesman a $3,000 salary increase. If FCG gives this increase, by how much would sales at FCG have to increase in order for the company to maintain its current net operating income level?
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The following information relates to FCG Company:
Degree of operating leverage
4
Margin of safety
$25,000...
The following information relates to FCG Company: Degree of operating leverage Margin of safety Margin of...
The following information relates to FCG Company: Degree of operating leverage Margin of safety Margin of safety percentage Contribution margin ratio $25,000 25% 40% 12. If FCG's sales increase by 10%, by what percentage will its net operating income increase? a. 10% b. 4% c. 40% d. 30% 13. FCG wants to give its only salesman a $3,000 salary increase. If FCG gives this increase, by how much would sales at FCG have to increase in order for the company...
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3. Construct a new contribution format income statement for
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14.assume that the amounts of the company's total variable
expenses and total fixed expenses were reversed. in other wrds,
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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 18% 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: Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $ 143.000 57,200 85,800 21,000...
11-15 please.
12. what is the degree of operating leverage?
13. using the degree of operating leverage, what is the
estimated percent increase in net operating income of a 5% increase
in sales?
14.assume that the amounts of the company's total variable
expenses and total fixed expenses were reversed. in other wrds,
assume that the total variable expenses are $27,720 and the total
fixed expenses are $73,500. under this scenario and assuming that
total sales remain the same, what is...
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