ZuoTi.Pro
Question

Calculate the degree of operating leverage for the company below: Total costs                     275,000 Variable costs     &nbsp

Calculate the degree of operating leverage for the company below:

Total costs                     275,000

Variable costs                150,000 DOL ______________

Operating Cash Flow       250,000

Expected Quantity          6,000

Actual Quantity               6,300

What is the percent increase in quantity? ______________

If quantity increases by this amount, what will be the percent increase in OCF? ______________

New OCF dollar amount __________________

New DOL at the higher quantity _________________

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Calculate the degree of operating leverage for the company below: Total costs                     275,000 Variable costs     &nbsp
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • At an output level of 49,000 units, you calculate that the degree of operating leverage is...

    At an output level of 49,000 units, you calculate that the degree of operating leverage is 3.6. The output rises to 55,000 units. What will the percentage change in operating cash flow be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in OCF % Will the new level of operating leverage be higher or lower? Higher Lower

  • Degree of operating leverage Grey Products has fixed operating costs of $389,000, variable operating costs of...

    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...

    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....

  • How can I determine current DOL (degree of operating leverage), DFL (degree of financial leverage), and...

    How can I determine current DOL (degree of operating leverage), DFL (degree of financial leverage), and DCL (degree of combined leverage)? If maximization of earning per share is the goal, what is the indifference EBIT (EBIT*)? Also, Once the expansion is completed, the sales are expected to increase to $5,000,000. How can I calculate the new EBIT. At the new EBIT which method of financing results in a higher EPS? Calculate EPS for both plans at this new EBIT. new...

  • At an output level of 49,000 units, you calculate that the degree of operating leverage is...

    At an output level of 49,000 units, you calculate that the degree of operating leverage is 3.60. Suppose fixed costs are $250,000. What is the operating cash flow at 43,000 units? (Do not round intermediate calculations and round your final answer to the nearest whole number, e.g., 32.) Operating cash flow $ What is the new degree of operating leverage? (Do not round intermediate calculations and round your final answer to 3 decimal places, e.g., 32.161.) Degree of operating leverage

  • At an output level of 45,000 units, you calculate that the degree of operating leverage is...

    At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. Fixed costs are $175,000. a. What is the operating cash flow at 43,000 units? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32) b. What is the degree of operating leverage? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) Operating cash flow 5. DOL

  • Degree of operating leverage—Graphical Levin Corporation has fixed operating costs of 580,000, variable operating costs of...

    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

    Exercise 9-32 (Static) Degree of Operating Leverage (DOL) [LO 9-5]TastyKreme and Krispy Kake are both producers of baked goods, but each has followed a different production strategy. The differences in their strategies resulted in differences in their cost structure, as shown in the following table:  TastyKremeKrispy KakeEstimated sales in units20,00015,000Unit price6.008.00Variable cost per unit3.003.00Total fixed costs$ 30,000$ 45,000 Required:1. Compute the operating income and degree of operating leverage for each company. (Round "Degree of operating leverage" to 1 decimal place.)2. Assuming sales volume for...

  • #11 Variable operating costs 45,000 Gross profit Fixed operating costs 20,000) Net operating income25,000 Interest Earnings...

    #11 Variable operating costs 45,000 Gross profit Fixed operating costs 20,000) Net operating income25,000 Interest Earnings before taxes 15,000) 10,000 4,000) 6,000 Taxes (40%) Net income Compute Surfside's degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL). 12-11 Data Recovery Systems (DRS) has a degree of operating leverage (DOL) equal to 3.2x and a degree of total leverage (DTL) equal to 8x. DRS forecasts that this year's sales will be $300,000 and that...

  • Titan Industries has a degree of operating leverage of 2. Titan is considering automating some of...

    Titan Industries has a degree of operating leverage of 2. Titan is considering automating some of its plants, allowing it to reduce its labor force. The increased fixed cost of maintaining the machinery, however, will keep Titan's total production costs the same. Which one of the following is most likely true should Titan automate the plants? A. the degree of operating leverage will remain the same B. a 1% increase in quantity sold will increase OCF by 2% C. a...

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