Question

sheridan's bakery income statement for last month is given below. what is brandi's degree of operating...

sheridan's bakery income statement for last month is given below. what is brandi's degree of operating levarage?

sales 285000

variable exp 82500

contribution margin 202500

fixed expenses 142500

operating income 60000

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Degree of operating leverage = Contribution margin/Operating income

= 202500/60000

Degree of operating leverage = 3.375 or 3.38

Add a comment
Know the answer?
Add Answer to:
sheridan's bakery income statement for last month is given below. what is brandi's degree of operating...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses:...

    The following is Allison Corporation's contribution format income statement for last month: Sales: $900,000 Variable Expenses: $600,000 Contribution Margin: $300,000 Fixed Expenses: $150,000 Net Operating Income: $ ?????? The company has no beginning or ending inventories. The company produced and sold 15,000 units last month. What is the Company's degree of operating leverage? Oo oo A Moving to another question will save this response.

  • Morton Company’s contribution format income statement for last month is given below: Sales (15,000 units ×...

    Morton Company’s contribution format income statement for last month is given below: Sales (15,000 units × $30 per unit) $450,000 Variable expenses 315,000 Contribution margin 135,000 Fixed expenses 90,000 Net operating income$45,000 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $9 per unit. However, fixed expenses would increase to a total of $225,000 each month. Prepare two contribution format income statements, one...

  • The following is XYZ’s contribution format income statement for last month: Sales $600,000 Variable expenses 400,000...

    The following is XYZ’s contribution format income statement for last month: Sales $600,000 Variable expenses 400,000 Contribution margin 200,000 Fixed expenses 100,000 Net operating income $100,000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month. 1 What is the company's contribution margin ratio? 2 What is the company's contribution margin? 3 What is the company's break-even in units? 4 If sales increase by 200 units, by how much should net operating income...

  • Merton Company's contribution format income statement for last month is given below: c. The margin of...

    Merton Company's contribution format income statement for last month is given below: c. The margin of safety in both dollar and percentage terms. Sales (50,000 units x $20 per unit) Variable expenses $1,000,000 700,000 Present Proposed Contribution margin Fixed expenses 300.000 240,000 Margin of safety in dollar Margin of safety in percentage Net operating income S 80.000 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to...

  • 11-15 please. 12. what is the degree of operating leverage? 13. using the degree of operating...

    11-15 please. 12. what is the degree of operating leverage? 13. using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? 14.assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. in other wrds, assume that the total variable expenses are $27,720 and the total fixed expenses are $73,500. under this scenario and assuming that total sales remain the same, what is...

  • 13.What is the degree of operating leverage? 14.Using the degree of operating leverage, what is the...

    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...

    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...

  • Morton Company's contribution format income statement for last month is given below: Sales (41,000 units $23...

    Morton Company's contribution format income statement for last month is given below: Sales (41,000 units $23 per unit) Variable expenses Contribution margin Fixed expenses Net operating income S 943,000 660,100 282,900 226,320 56,580 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits. Required 1....

  • Using the degree of operating leverage, what is the estimated percent increase in net operating income...

    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...

  • Morton Company's contribution format income statement for last month is given below: Sales (50,000 units *...

    Morton Company's contribution format income statement for last month is given below: Sales (50,000 units * $28 per unit) Variable expenses Contribution margin Fixed expenses Net operating income $ $ 1,400,000 980,000 420,000 336,000 $ 84,000 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT