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Part a1 | Armstrong Co | Contador Co | ||
Contribution | a | $ 256,000 | $ 444,000 | |
Net Income | b | $ 100,000 | $ 100,000 | |
Degree of operating leavarage | a/b | 2.56 | 4.44 | |
Part b | ||||
Armstrong Co | Contador Co | |||
Sales | Increase by 10% | $ 544,500 | $ 544,500 | |
Variable costs | Increase by 10% | $ 262,900 | $ 56,100 | |
Contribution margin | $ 281,600 | $ 488,400 | ||
Fixed costs | Same | $ 156,000 | $ 344,000 | |
Net income | $ 125,600 | $ 144,400 | ||
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co....
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. Contador Co. $507,000 $507,000 234,000 51,000 273,000 456,000 173,000 356,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $500,000 240,000 260,000 160,000 $100,000 $500,000 50,000 450,000 350,000 $100,000 Degree of operating leverage for each company is as follows: Degree of Operating Leverage 2.6 4.5 Armstrong Contador Assuming that sales revenue increases by 10%, the variable costing income statement for each company is as follows: Sales Revenue Variable Costs Contribution Margin Fixed...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $491,000 243,000 248,000 148,000 $100,000 Contador Co. $491,000 51,000 440,000 340,000 $100,000 $100, (al) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Sales $495,000 $495,000 Variable costs 244,000 55,000 Contribution margin 251,000 440,000 Fixed costs 151,000 340,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. Contador Co. $503,000 $503,000 248,000 45,000 255,000 458.000 155,000 358,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
E19.14 (LO 4) The CVP income statements shown below are available for Armstrong Company and Contador Company Armstrong Co. Contador Co. Sales $500,000 S500,000 Variable costs 240.000 50.000 Contribution margin 260.000 450,000 Fixed costs 160,000 350,000 Net income $100,000 S100,000 Instructions a. Compute the degree of operating leverage for each company and interpret your results. b. Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company c. Discuss how the cost structure of these...
Exercise 6-14 a1, b (Video) Your answer is partially correct. Try again. The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Sales $499,000 $499,000 46,000 Variable costs 242,000 Contribution margin 257,000 453,000 Fixed costs 157,000 353,000 $100,000 $100,000 Net income (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong 2.57 Contador 4.53 (b) Assuming that sales revenue...
VW POES Current Attempt in Progress The CVP Income statements shown below are available for Armstrong company and Contador Company Sales Variable costs Contribution margin Fond costs Net Income Armstrong Co. Contador Co. $499.000 $499.000 242000 46.000 257.000 453,000 157.000 3501000 $100.000 $100.000 rong (1) Compute the degree of operating leverage for each company. Round a Surces 1150 Camous Degree of Operating Leverage Armstrong valuation Contador Assuming that als een by 10% prepare a variable costing income statement for each...
Current Attempt in Progress The CVP Income statements shown below are available for Waterway Company and Crane Company Sales Variable costs Contribution margin Fixed costs Net income Waterway Co. Crane Co. $505,000 $505,000 247.000 49.000 258,000 456,000 158,000 356,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15) Degree of Operating Leverage Waterway Crane (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for...
The CVP income statements shown below are available for XYZ Company and ABC Company. Sales revenue Variable costs Contribution margin Fixed costs Operating income XYZ Co. $885,000 520,000 365,000 265,000 $100,000 ABC Co. $885,000 292,700 592,300 492,300 $100,000 Calculate each company's degree of operating leverage. (Round answers to 4 decimal places, e.g. 1.2531.) Degree of operating leverage 3.65 XYZ ABC 5.923 Determine which company's cost structure makes it more sensitive to changes in its sales volume. Авст LINK TO TEXT...