Ans. Option 8th 2.50 times
*Working Notes:
*Calculation of total contribution margin:
Total contribution margin = Sales * Contribution margin ratio
= $500,000 * 0.40
= $200,000
*Calculation of operating leverage :
Degree of operating leverage = Contribution margin / Targeted operating income
= $200,000 / $80,000
= 2.50 times
2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted...
11. If the contribution margin ratio is 0.40, targeted operating income is $80,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverage is: A) 1.50 times B) 2.00 times C) 2.50 times D) 3.00 times
If the contribution margin ratio is 0.60, targeted operating income is $100,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverage is ________. 3.00 times 0.67 times 0.33 times 2.00 times
Question 13 1.5 If the contribution margin ratio is 0.40, targeted operating income is 595,000, and targeted sales volume in dollars is 5520,000, then the degree of operating leverage is 1.50 times 0.46 times 3.28 times 2.19 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...
If the contribution margin ratio is 0.45, targeted operating income is $95,000, and targeted sales volume in dollars is $550,000, then the degree of operating leverage is ________. A. 2.61 times B. 3.18 times C. 1.22 times D. 0.38 times
If the contribution margin ratio 1 0.25 targeted operating income is $25,000, and targeted sales volume in dollars is \$200,000 , then total fixed costs are what : $75.000 525,000 $100,000 \$50,000
If the contribution margin ratio is 0.25, targeted operating income is $50,000, and targeted sales volume in dollars is $260,000, then total fixed costs are Select one: O A. $157,500 O B. $35,000 O C. $15,000 O D. $210,000
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 ________...
Problem 2-20 Points: The CGC Computer Products most recent contribution margin income statement is shown on the worksheet. In each of the following scenarios, calculate the values indicated. (CALCULATE ALL CHANGES FROM THE BEGINNING SCENARO OF NUMBERS-hint: it may be easier to copy the base income statement and paste to all other scenarios) A. The breakeven point in dollars and units. B. The sales volume increases by 30% and the price decreases by $0.50 per unit. c. The selling price...
1.What is the contribution margin per unit? 2.What is the contribution margin ratio? 3.What is the variable expense ratio? 4.If sales increase to 1,001 units, what would be the increase in net operating income? 5.If sales decline to 900 units, what would be the net operating income? 6.If the selling price increases by $2.50 per unit and the sales volume decreases by 100 units, what would be the net operating income? 7.If the variable cost per unit increases by $1.50,...