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Question 6 The CVP income statements shown below are available for XYZ Company and ABC Company...
The CVP income statements shown below are available for XYZ Company and ABC Company. Sales revenue...
The CVP income statements shown below are available for XYZ Company and ABC Company. Sales revenue Variable costs Contribution margin Fixed costs Operating income XYZ Co. $885,000 520,000 365,000 265,000 $100,000 ABC Co. $885,000 292,700 592,300 492,300 $100,000 Calculate each company's degree of operating leverage. (Round answers to 4 decimal places, e.g. 1.2531.) Degree of operating leverage 3.65 XYZ ABC 5.923 Determine which company's cost structure makes it more sensitive to changes in its sales volume. Авст LINK TO TEXT...
XYZ Co. ABC Co. $922,400 $922,400 518,600 313,100 Contribution margin 403,800 609,300 303,800 509,300 Operating income...
XYZ Co. ABC Co. $922,400 $922,400 518,600 313,100 Contribution margin 403,800 609,300 303,800 509,300 Operating income $100,000 $100,000 Sales revenue Variable costs Fixed costs Calculate each company's degree of operating leverage. (Round answers to 4 decimal places, e.g. 1.2531.) Degree of operating leverage 4.038 6.093 XYZ ABC Determine which company's cost structure makes it more sensitive to changes in its sales volume ABC LINK TO TEXT Determine the effect on each company's operating income if sales decrease by 10% XYZ:...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co....
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $500,000 240,000 260,000 160,000 $100,000 $500,000 50,000 450,000 350,000 $100,000 Degree of operating leverage for each company is as follows: Degree of Operating Leverage 2.6 4.5 Armstrong Contador Assuming that sales revenue increases by 10%, the variable costing income statement for each company is as follows: Sales Revenue Variable Costs Contribution Margin Fixed...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. Contador Co. $503,000 $503,000 248,000 45,000 255,000 458.000 155,000 358,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co....
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Armstrong Co. Sales $495,000 $495,000 Variable costs 239,000 51,000 Contribution margin 256,000 444,000 Fixed costs 156,000 344,000 $100,000 $100,000 Net income (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Contador Company...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $491,000 243,000 248,000 148,000 $100,000 Contador Co. $491,000 51,000 440,000 340,000 $100,000 $100, (al) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. Contador Co. $507,000 $507,000 234,000 51,000 273,000 456,000 173,000 356,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
Current Attempt in Progress The CVP Income statements shown below are available for Waterway Company and...
Current Attempt in Progress The CVP Income statements shown below are available for Waterway Company and Crane Company Sales Variable costs Contribution margin Fixed costs Net income Waterway Co. Crane Co. $505,000 $505,000 247.000 49.000 258,000 456,000 158,000 356,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15) Degree of Operating Leverage Waterway Crane (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for...
E19.14 (LO 4) The CVP income statements shown below are available for Armstrong Company and Contador...
E19.14 (LO 4) The CVP income statements shown below are available for Armstrong Company and Contador Company Armstrong Co. Contador Co. Sales $500,000 S500,000 Variable costs 240.000 50.000 Contribution margin 260.000 450,000 Fixed costs 160,000 350,000 Net income $100,000 S100,000 Instructions a. Compute the degree of operating leverage for each company and interpret your results. b. Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company c. Discuss how the cost structure of these...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co....
The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Sales $495,000 $495,000 Variable costs 244,000 55,000 Contribution margin 251,000 440,000 Fixed costs 151,000 340,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
The CVP income statements shown below are available for XYZ Company and ABC Company. Sales revenue Variable costs Contribution margin Fixed costs Operating income XYZ Co. $885,000 520,000 365,000 265,000 $100,000 ABC Co. $885,000 292,700 592,300 492,300 $100,000 Calculate each company's degree of operating leverage. (Round answers to 4 decimal places, e.g. 1.2531.) Degree of operating leverage 3.65 XYZ ABC 5.923 Determine which company's cost structure makes it more sensitive to changes in its sales volume. Авст LINK TO TEXT...
XYZ Co. ABC Co. $922,400 $922,400 518,600 313,100 Contribution margin 403,800 609,300 303,800 509,300 Operating income $100,000 $100,000 Sales revenue Variable costs Fixed costs Calculate each company's degree of operating leverage. (Round answers to 4 decimal places, e.g. 1.2531.) Degree of operating leverage 4.038 6.093 XYZ ABC Determine which company's cost structure makes it more sensitive to changes in its sales volume ABC LINK TO TEXT Determine the effect on each company's operating income if sales decrease by 10% XYZ:...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $500,000 240,000 260,000 160,000 $100,000 $500,000 50,000 450,000 350,000 $100,000 Degree of operating leverage for each company is as follows: Degree of Operating Leverage 2.6 4.5 Armstrong Contador Assuming that sales revenue increases by 10%, the variable costing income statement for each company is as follows: Sales Revenue Variable Costs Contribution Margin Fixed...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. Contador Co. $503,000 $503,000 248,000 45,000 255,000 458.000 155,000 358,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Contador Co. Armstrong Co. Sales $495,000 $495,000 Variable costs 239,000 51,000 Contribution margin 256,000 444,000 Fixed costs 156,000 344,000 $100,000 $100,000 Net income (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Contador Company...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. $491,000 243,000 248,000 148,000 $100,000 Contador Co. $491,000 51,000 440,000 340,000 $100,000 $100, (al) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong...
The CVP income statements shown below are available for Armstrong Company and Contador Company. Sales Variable costs Contribution margin Fixed costs Net income Armstrong Co. Contador Co. $507,000 $507,000 234,000 51,000 273,000 456,000 173,000 356,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company...
Current Attempt in Progress The CVP Income statements shown below are available for Waterway Company and Crane Company Sales Variable costs Contribution margin Fixed costs Net income Waterway Co. Crane Co. $505,000 $505,000 247.000 49.000 258,000 456,000 158,000 356,000 $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15) Degree of Operating Leverage Waterway Crane (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for...
E19.14 (LO 4) The CVP income statements shown below are available for Armstrong Company and Contador Company Armstrong Co. Contador Co. Sales $500,000 S500,000 Variable costs 240.000 50.000 Contribution margin 260.000 450,000 Fixed costs 160,000 350,000 Net income $100,000 S100,000 Instructions a. Compute the degree of operating leverage for each company and interpret your results. b. Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company c. Discuss how the cost structure of these...
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