Assume total sales of $736000, total variable costs of $368000, and total fixed costs of $276000....

Question

Question

Assume total sales of $736000, total variable costs of $368000, and total fixed costs of $276000. Of these amounts $184000 of

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Contribution margin=Sales-Variable cost

=(736,000-368,000)=$368000

Net operating income=Contribution margin-Fixed cost

=368000-276,000=$92000

Degree of operating leverage=Contribution margin/Net operating income

=368000/92000

=4

Add a comment

Answer 2

Similar Homework Help Questions

Assume total sales of $656000, total variable costs of $328000, and total fixed costs of $246000....

Assume total sales of $656000, total variable costs of $328000, and total fixed costs of $246000. Of these amounts $164000 of the variable costs are product costs, and $82000 of the fixed costs are period costs. What is the degree of operating leverage? 0.25 4.00 8.00 2.00
If a company had total sales of $1,020, total variable costs of $567, total fixed costs...

If a company had total sales of $1,020, total variable costs of $567, total fixed costs of $340, and total interest expenses of $198, then the Degree of Operating Leverage would be __.__. Round your answer to 2 decimal places.
If a company had total sales of $1,000, total variable costs of $400, total fixed costs...

If a company had total sales of $1,000, total variable costs of $400, total fixed costs of $300, and total interest expenses of $100, then the Degree of Financial Leverage would be __.__. Round your answer to 2 decimal places.

Firm A Firm B units Price Variable Cost Fixed Costs Interest Expense Tax Rate 200.00 300.00...

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...
Prestige has revenue of $50 million with 20% variable costs. It has $20 million of bonds...

Prestige has revenue of $50 million with 20% variable costs. It has $20 million of bonds financed at 6% and has fixed costs of $30 million. What is Prestige's degree of total leverage? a. 1.1. b. 2.7. c. 4.0. d. 4.5. CJD Enterprise's EPS increased from $2.00 last year to $4.00 this year with a 20% increase in sales. If CJD's degree of operating leverage is 3.0, then what is CJD's degree of financial leverage? a. 1.5. b. 1.67 c....
Integrative-Leverage and risk Firm R has sales of 97,000 units at $2.03 per unit, variable operating costs of $1.67 per unit, and fixed operating costs of $6,070. nterest is $10,080 per year. Firm W...

Integrative-Leverage and risk Firm R has sales of 97,000 units at $2.03 per unit, variable operating costs of $1.67 per unit, and fixed operating costs of $6,070. nterest is $10,080 per year. Firm W has sales of 97,000 units at $2.56 per unit, variable operating costs of $0.97 per unit, and fixed operating costs of $62,400 Interest is $17,200 per year. Assume that both firms are in the 40% tax bracket. a. Compute the degree of operating, financial, and total...

Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed...

Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed costs are $120,000. a. What is the break-even point in units? Break-Even Point 2,609 units b. What unit sales would be required to earn a target profit of $328,000? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.) Degree of Operating Leverage d....
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes...

Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000...
Given the graphs above, calculate the total fixed costs,variable costs per unit, and sales price...

Given the graphs above, calculate the total fixed costs, variable costs per unit, and sales price for Firm A. Firm B's fixed costs are $120,000, its variable costs per unit are $4, and its sales price is $8 per unit. Round your answers to the nearest cent.Fixed costs: $ Variable costs per unit: $ Sales price per unit: $ Which firm has the higher operating leverage at any given level of sales?A or BAt what sales level, in units, do both firms earn...

14. Assume that the amounts of the company's total variable expenses and total food expenses were...

14. Assume that the amounts of the company's total variable expenses and total food expenses were reversed. In other words, sume that the total variable expenses are 37.788 and the total fixed expenses are $13,900. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 4.64 Required Information The following information applies to the questions displayed below References Oslo Company prepared...

Assume total sales of $736000, total variable costs of $368000, and total fixed costs of $276000....

Homework Answers

Add Answer to:
Assume total sales of $736000, total variable costs of $368000, and total fixed costs of $276000....

Post as a guest

Earn Coins

Assume total sales of $656000, total variable costs of $328000, and total fixed costs of $246000....

If a company had total sales of $1,020, total variable costs of $567, total fixed costs...

If a company had total sales of $1,000, total variable costs of $400, total fixed costs...

Firm A Firm B units Price Variable Cost Fixed Costs Interest Expense Tax Rate 200.00 300.00...

Prestige has revenue of $50 million with 20% variable costs. It has $20 million of bonds...

Integrative-Leverage and risk Firm R has sales of 97,000 units at $2.03 per unit, variable operating costs of $1.67 per unit, and fixed operating costs of $6,070. nterest is $10,080 per year. Firm W...

Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed...

Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes...

Given the graphs above, calculate the total fixed costs,variable costs per unit, and sales price...

14. Assume that the amounts of the company's total variable expenses and total food expenses were...

Assume total sales of $736000, total variable costs of $368000, and total fixed costs of $276000....

Homework Answers

Add Answer to: Assume total sales of $736000, total variable costs of $368000, and total fixed costs of $276000....

Post as a guest

Earn Coins

Add Answer to:
Assume total sales of $736000, total variable costs of $368000, and total fixed costs of $276000....