Levin corporation has fixed operating costs of $72,000, variable operating cost of $6.75 per unit, and selling price of $9.75 per unit.
(A) Calculate the operating breakeven point in units.
(B) Suppose the level of sales in 2017 is 250,000. What is the percentage change in EBIT if the level of sales in 2018 increases by 10%? (Calculate DOL first)
Levin corporation has fixed operating costs of $72,000, variable operating cost of $6.75 per unit, and...
Degree of operating leverage—Graphical Levin Corporation has fixed operating costs of 580,000, variable operating costs of 96.60 per unit, and a selling price of 59.50 per unit a. Calculate the operating breakeven point in units. b. Compute the degree of operating leverage (DOL) using the following unit sales levels as a base: 27,667, 31.667, 39,667 Use the formula given in the chapter c. Graph the DOL figures that you computed in part (b) (on they axis) against base sales levels...
Degree of operating leverage Grey Products has fixed operating costs of $389,000, variable operating costs of $16.19 per unit, and a selling price of $63.43 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 10,000, 12,000, and 14,000 units, respectively. c. With 12,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d....
Degree of operating leverage Grey Products has fixed operating costs of $373,000, variable operating costs of $16.55 per unit, and a selling price of $63.45 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 11,000, 13,000, and 15,000 units, respectively. c. With 13,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d....
Question Help Canvas Reproductions has fixed operating costs of $12,300 and variable operating costs of $10.96 per unit and sells its paintings for $26.21 each. At what level of unit sales will the company break even in terms of EBIT? The operating breakeven point is units. (Round to the nearest integer.)
problem:- Case 1 - Sales = 40,000 units; Selling price per unit = $5.0; Fixed operating costs = $40,000.0; Unit variable cost = 40.0% of Selling price; Interest expense = $10,000.0; Taxes = 30.0%; No. of Common stock shares = 10,000.0 shares. Case 2 - Sales = 60,000.0 units. Case 3 - Sales = 20,000.0 units. a) In case 1, what is your EBIT? EPS? b) In case 3, what is the change in sales? EPS? c) In case 2,...
6. Assume total fixed costs of $249600, variable costs per unit of $6, and contribution margin per unit of $4. What are the sales dollars required to earn a target net income of $78000 assuming a tax rate of 20%? A. $546000 B. $867750 C. $780000 D. $819000 6. Assume a sales price per unit of $20, variable cost per unit $10, and total fixed costs of $16200. If no units are sold, how much cost would the company incur?...
EBIT Sensitivity Stewart Industries sells its finished product for $9.46 per unit. Its fixed operating costs are $20, 100, and the variable operating cost per unit is $4.79. a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 12,000 units. b. Calculate the firm's EBIT for sales of 11,000 and 13,000 units, respectively. c. Calculate the percentage changes in sales (from the 12,000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated...
46-49. Wheaten Enterprises, Ine. has fixed operating costs of $150,000, the selling price per unit of its product is $150, and its variable cost per unit for this product is S110. a. Calculate the firm's operating breakeven point in units b. What is the firm's breakeven point in sales dollars?
EBIT Sensitivity Stewart Industries sells its finished product for $8.71 per unit. Its fixed operating costs are $19,700, and the variable operating cost per unit is 54 29. a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 12,000 units b. Calculate the firm's EBIT for sales of 9,000 and 15.000 units respectively c. Calculate the percentage changes in sales (from the 12,000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated...
The following data apply to Beta Corporation for a given period: Variable costs per unit $3.50 Contribution margin per unit $1.50 Breakeven sales (present volume) $1,000,000 Beta wants to sell an additional 50,000 units at the same selling price. Variable costs per unit are not likely to change, but Beta may incur additional fixed costs. By how much can fixed costs increase before the additional 50,000 units of sales are not worthwhile?