Sales | 400,000 |
Less:Variable costs | 250,000 |
Contribution margin | 150,000 |
Less:fixed costs | 90,000 |
Operating income | 60,000 |
Operating leverage=contribution margin/operating income
=150,000/60,000
=2.5 times
Sales of Blistre Autos are 400,000, variable cost is 250,000, fixed cost is 90,000 tax rate...
Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. 2.80 times 1.80 times 4.67 times 1.50 times
Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. 4.67 times 1.80 times 2.80 times 1.50 times
Sales of Blistre Autos are 380,000, variable cost is 200,000, fixed cost is 80,000 tax rate is 40%. Calculate the operating leverage of the company. 1.11 times 0.80 times 1.80 times 3.00 times
If the contribution margin ratio is 0.40, targeted operating income is $95,000, and targeted sales volume in dollars is $520,000, then the degree of operating leverage is ________. 3.28 times 0.46 times 1.50 times 2.19 times Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. 1.50 times 2.80 times 4.67 times 1.80 times Tony Manufacturing produces a single product that sells for $80. Variable...
Firm A Firm B units Price Variable Cost Fixed Costs Interest Expense Tax Rate 200.00 300.00 180.00 2,400.00 500.00 0.25 units Price Variable Cost Fixed Costs Interest Expense Tax Rate 2,000.00 8.00 4.50 2,400.00 500.00 0.25 Sales 200 units at 300 dollars Less Variable Costs (180 at 200 units) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense Earnings after taxes (EAT) 60,000.00 36,000.00 2,400.00 21,600.00 500.00 21,100.00 5,275.00 15,825.00 Sales 2000...
Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $520,000. Next year, sales are projected to be $3,400,000. An advertising campaign is being evaluated that costs an additional $110,000. How much would sales have to increase to justify the additional expenditure? O A. $1,360,000 OB. $275,000 OC. $520,000 OD. $165,000
If the contribution margin ratio is 0.60, targeted operating income is $55,000, and fixed costs are $90,000, then sales volume in dollars is ________. $150,000 $91,667 $362,500 $241,667 Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $530,000. Next year, sales are projected to be $3,200,000. An advertising campaign is being evaluated that costs an additional $110,000. How much would sales have to increase to justify the additional expenditure? $1,280,000 $165,000 $275,000 $530,000 ________...
Paxton Corp has provided the following data concerning its operations last month: Sales Variable expenses $400,000 $250,000 $100,000 Fixed expenses Paxton Corp is a retailing organization, What is the degree of operating leverage (DOL)? Select one: O a. 0.33 O b.3. O c. 5. d. 8
Variable costs are 70% of Sales and Fixed costs are $400,000. The firm has $2,000,000 in debt with in interest rate of 5%. At what level of Sales will their Degree of Combined Leverage equal 4? a) $2,500,000 b) $2,666,667 c) $ 3,333,333 d) $4,000,000
Sales total $400,000 when variable costs total $330,000 and fixed costs total $50,000. The breakeven point in sales dollars is - (Round interim calculations to two decimal places and the final answer to the nearest dollar.) O A. $1,833,333 OB. $388,889 OC. $560,000 OD. $277,778