Homework Answers
a. Breakeven sales=fixed cost/(sell price per unit-variable cost per unit)
3500=fixed cost/(25-16)
Fixed cost=3500*9=$31,500
b. EBIT=(number of units*(sell price-variable cost)) - fixed costs
=(5000*(25-16))-31500
=45,000-31,500
=$13,500
c. Degree of operating leverage=contribution margin/EBIT
=Sales-variable cost/(sales-variable cost-fixed cost)
=(6000*(25-16))/(((6000*(25-16))-31500)
=54000/(54000-31500)
=2.4
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1. Lens Company has variable operating cost of $16 per unit and sell price of $25...
1. Lens Company has variable operating cost of $16 per unit and sell price of $25...
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units.
1. Lens Company has variable operating cost of $16 per unit and sell price of $25...
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units. MacBook Pro 8 6 5 E R
2. ABC Company has variable operating cost of $15 per unit and sell price of $25...
2. ABC Company has variable operating cost of $15 per unit and sell price of $25 per unit if company's operating break-even point is 3000 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 4000 units.
Lens Company has variable operating cost of 16 per unit Each of the following question is...
Lens Company has variable operating cost of 16 per unit
Each of the following question is accounted 10 points. Please show the deta work in order to get full credits. 1. Lens Company has variable operating cost of $16 per unit and sell pri of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage...
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1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units.
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2. ABC Company has variable operating cost of $15 per unit and sell price of $25 per unit if company's operating break-even point is 3000 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 4000 units.
Lens Company has variable operating cost of 16 per unit
Each of the following question is accounted 10 points. Please show the deta work in order to get full credits. 1. Lens Company has variable operating cost of $16 per unit and sell pri of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage...
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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?...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
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price, variable cost per unit, and contribution margin per unit for
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