Based on the following operating data, what is the operating leverage? a. 0.8 b. 1.2 c. 1.8
Question:
Based on the following operating data, what is the operating leverage?
a. 0.8
b. 1.2
c. 1.8
d. 4.0
Transcribed Image Text:
Sales...... Variable costs Contribution margin..... Fixed costs..... Operating income.. $ 600,000 (240,000) $360,000 (160,000) $ 200,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
c The operating leverage is 18 ...View the full answer
Answered By
Omar ELmoursi
I'm Omar, I have Bachelor degree in Business and Finance, My unique approach is to help students with questions and assignments, I can teach Business, Math, Accounting, Managerial Accounting, Economy, Human resources management, organizational behavior, project management, I have experience dealing with different types of students and teach them how to deal with different types of exercises.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Financial And Managerial Accounting
ISBN: 9781337902663
15th Edition
Authors: Carl S. Warren, Jefferson P. Jones, William B. Tayler
Question Posted:
Students also viewed these Business questions
-
The government is using fiscal policy when it B O a. decreases the tax rate Ob. decreases the discount rate via the Reserve Bank O c. buys the domestic currency (e.g. $F) on foreign exchange markets...
-
(a) Write the electronic configuration of the complex (Fe(NH3)6]3* on the basis of Ligand Field theory and draw the MO diagram. (b) Predict whether a reaction will occur when Br is added to aqueous...
-
The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed...
-
Being able to identify an industry to use for benchmarking yourfirm's results with similar companies is frequently not easy. Choose a type of business and go to www.naics.com. This Web site allows...
-
Does the molecular model shown represent (+)-2-butanol or (-)-2-butanol?
-
Darrell Corporation reports under IFRS. At December 31, 2020, the company had a net deferred tax liability of $402,000. An explanation of the items that make up this balance follows: Instructions a....
-
Prove that, if \(\tau\) is an initial time with \(\mathbb{E}_{\mathbb{Q}}\left(1 / \alpha_{\infty}^{\tau} ight)
-
Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA...
-
Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $...
-
If sales are $500,000, variable costs are $200,000, and fixed costs are $240,000, what is the contribution margin ratio? a. 40% b. 48% c. 52% d. 60%
-
Toussant Company sells 20,000 units at $120 per unit. Variable costs are $90 per unit, and fixed costs are $250,000. a. Prepare an income statement for Toussant in contribution margin format. b....
-
The Euler numbers are the numbers En (n = 0, 1, 2( ( ( () in the Maclaurin series representation Point out why this representation is valid in the indicated disk and why Then show that En nl Eat! = 0...
-
To model a maze as a graph, you can create vertices representing the starting point, finishing point, dead ends, and intersections where multiple paths are available. These vertices can then be...
-
How does the story of innovation in cardiac care rely on certain conditions for innovation? How might educators explore ideas from other domains, and utilise analogical thinking? Which domains or...
-
What is the output of this code? name1= "Betty joe" name2= "Betty Jean" name3= = "Betty Jane" if namel < name2: if namel < first else: else: name3: name1 first name 3 else: = if name2 < name3: first...
-
Write a letter to customer complaint manager to ask him the exchange of wrong shoes delieverd. Ask him to provide the correct shoes .
-
Why Do People believe Weird Things? TED Talk.
-
What is meant by the term generally accepted accounting principles?
-
The trade-off theory relies on the threat of financial distress. But why should a public corporation ever have to land in financial distress? According to the theory, the firm should operate at the...
-
Journalize the entries to record the following selected transactions: a. Sold $12,900 of merchandise on account, subject to a sales tax of 4%. The cost of the merchandise sold was $7,800. b. Paid...
-
Skycrest Co., a furniture wholesaler, sells merchandise to Boyle Co. on accounts, $45,000, terms 2/10, n/30. The cost of the merchandise sold is $27,000. Skycrest Co. issues a credit memo for $9,000...
-
Based on the data presented in Exercise 5-23, Journalize Boyle Co.s entries for (a) The purchase, (b) The return of the merchandise for credit, and (c) The payment of the invoice within the discount...
-
1, How should the board of directors react if their firm grows its M-score? 2. As the economic environment grows more difficult and firms become more tempted to cheat, what can corporate governance...
-
Only answer part a Exercise 1. Pseudorandom Functions [40 points] Let Fk {0,1}" {0, 1}" be a pseudorandom function. For each of the functions below you will have to show that it is NOT a PRF,i.e.,...
-
Discuss the Marxist perspective on employer relations and state how it's applicable to modern day workpalces.
Study smarter with the SolutionInn App