11. | Contribution margin ratio = Contribution margin / Sales = 31500 / 105000 | 30% |
Break even sales in dollars = Fixed expenses / Contribution margin ratio = 27720 / 30% | 92400 | |
Margin of safety in dollars = Sales - Break even sales in dollars = 105000 - 92400 | 12600 | |
Margin of safety percentage = Margin of safety in dollars / Sales = 12600 / 105000 | 12% |
12. | Degree of operating leverage = Contribution margin / Net operating income = 31500 / 3780 | 8.33 |
13. | Degree of operating leverage = % change in Net operating income / % change in sales | |
8.33 = % change in net operating income / 5% | ||
% change in net operating income = 8.33 * 5% | 41.65% |
Increase in net operating income | 41.65% |
14. | Sales | 105000 |
(-) Variable costs | 27720 | |
Contribution margin | 77280 | |
(-) Fixed expenses | 73500 | |
Net operating income | 3780 |
Degree of operating leverage = Contribution margin / Net operating income = 77280 / 3780 | 20.44 |
15. | Degree of operating leverage = % change in Net operating income / % change in sales | |
20.44 = % change in net operating income / 5% | ||
% change in net operating income = 20.44 * 5% | 102.20% |
Increase in net operating income | 102.20% |
11-15 please. 12. what is the degree of operating leverage? 13. using the degree of operating...
13.What is the degree of operating leverage?
14.Using the degree of operating leverage, what is the
estimated percent increase in net operating income of a 5% increase
in sales?
15.Assume that the amounts of the company’s total variable
expenses and total fixed expenses were reversed. In other words,
assume that the total variable expenses are $8,400 and the total
fixed expenses are $21,000. Under this scenario and assuming that
total sales remain the same, what is the degree of operating...
13.What is the degree of operating leverage?
14.Using the degree of operating leverage, what is the
estimated percent increase in net operating income of a 5% increase
in sales?
15.Assume that the amounts of the company’s total variable
expenses and total fixed expenses were reversed. In other words,
assume that the total variable expenses are $8,400 and the total
fixed expenses are $21,000. Under this scenario and assuming that
total sales remain the same, what is the degree of operating...
! Required information The Foundational 15 (Algo) (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] [The following information applies to the questions displayed below.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 50,000 27,500 22,500 14,850 $ 7,650 11. What is the margin of safety in dollars? What is the...
Using the degree of operating leverage, what is the estimated
percent increase in net operating income of a 5% increase in sales?
(Round your intermediate calculations and final answer to 2
decimal places.)
Assume that the amounts of the company’s total variable expenses
and total fixed expenses were reversed. In other words, assume that
the total variable expenses are $30,100 and the total fixed
expenses are $65,000. Under this scenario and assuming that total
sales remain the same, what is...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 105,000 Variable expenses 73,500 Contribution margin 31,500 Fixed expenses 27,720 Net operating income $ 3,780 14. Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $27,720 and the total fixed expenses are $73,500....
Check my w Required information The Foundational 15 (LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] (The following information applies to the questions displayed below.) Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,880 Foundational 5-15 15. Assume that the amounts of the company's total...
1.What is the contribution margin per unit?
2.What is the contribution margin ratio?
3.What is the variable expense ratio?
4.If sales increase to 1,001 units, what would be the increase
in net operating income?
5.If sales decline to 900 units, what would be the net
operating income?
6.If the selling price increases by $2.50 per unit and the
sales volume decreases by 100 units, what would be the net
operating income?
7.If the variable cost per unit increases by $1.50,...
hey
this is a milti-lart question. the info in the table is for all
parts.
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 25,000 17,500 7,500 4,200 $ 3,300 Foundational 6-5 5. If sales decline to 900 units, what would be the net operating income? Net operating income Foundational...
[The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 60,000 39,000 21,000 14,700 $ 6,300 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentageſ lo...
7.If the variable cost per unit increases by $1, spending on
advertising increases by $1,250, and unit sales increase by 150
units, what would be the net operating income?
8.What is the break-even point in unit sales?
9.What is the break-even point in dollar sales?
10.How many units must be sold to achieve a target profit of
$8,400?
11.What is the margin of safety in dollars?
12.What is the margin of safety percentage?
13.What is the degree of operating leverage?...