Juras Inc. and Hinson Inc. have the following operating data: a. Compute the operating leverage for Juras
Question:
Juras Inc. and Hinson Inc. have the following operating data:
a. Compute the operating leverage for Juras Inc. and Hinson Inc.
b. How much would income from operations increase for each company if the sales of each increased by 10%?
c. Why is there a difference in the increase in income from operations for the two companies?Explain.
Transcribed Image Text:
Juras Hinson Sales Variable costs Contribution margin Fixed costs Income from operations 160,000 $215,000 115,000 $100,000 75,000 10,000 25,000 130,000 30,000 20,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
a b Juras Incs income from operations would increase by 30 300 10 or 3000 ...View the full answer
Answered By
Arshad Ahmad
Well, I am really new to tutoring but I truly believe a good student can be a better teacher. I have always been a topper at school. I passed my Chartered Accountancy at a very young age of 23, a rare feat for most of the students. I am really dedicated to whatever work I do and I am very strict regarding deadlines. i am always committed and dedicated to whatever work allotted to me and I make sure it is completed well within deadline and also I try to give my best in whatever I do. Hope we will have a good time studying together.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Question Posted:
Students also viewed these Managerial Accounting questions
-
Why is there a difference in the amounts for Bad Debts Expense and Allowance for Doubtful Accounts?
-
Is there a difference in how companies report impairment losses on debt investments under IFRS compared to U.S. GAAP?
-
Is there a difference in how companies report impairment losses on equity investments under U.S. GAAP and IFRS?
-
The global survey we learned about in Exercise 49 also asked respondents how they felt about the statement "I try to avoid eating fast foods." The random sample of 800 included 411 people 35 years...
-
Indicate whether each of the following statements is true or false. 1. A company has the following assets at the end of the year: cash on hand $40,000, cash refund due from customer $30,000, and...
-
M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of...
-
Antibiotics in Infancy and Obesity in Adults "Antibiotics in infancy may cause obesity in adults," claims a recent headline. A study in mice randomly assigned infant mice to either be given...
-
Kelvin owns and lives in a duplex. He rents the other unit for $750 per month. He incurs the following expenses during the current year for the entire property: Mortgage interest $7,500 Property...
-
Please help me as much as you can!! I will take all your effort to solve this problem and will give you a good rate!!! Please show all the calculations in detail! Also, please do not copied and...
-
The following end-of-the-year balance sheets (in millions) were adapted from recent financial statements of Apple (AAPL). 1. Prepare common-sized balance sheets for Apple for Years 1 and 2. Round to...
-
At a recent staff meeting, the management of Hom Technology Products was considering discontinuing the Hercules line of laptop computers from the product line. The chief financial analyst reported...
-
In the following equations, based on the variable costing income statement, identify the items designated by X: a. Net Sales - X = Manufacturing Margin b. Manufacturing Margin - X = Contribution...
-
A circular shaft having a diameter of 4 in. is subjected to a torque of 250 kip # in. If the material is elastic perfectly plastic, with Y = 16 ksi, determine the radius of the elastic core.
-
How would the world be different than it is if the principle of diminishing marginal utility seldom held true?
-
According to the principle of diminishing marginal utility, how does marginal utility change as more of a good is consumed? As less of a good is consumed?
-
Why might the multiple-play ultimatum game have a different result than the single-play ultimatum game?
-
How has the median income of women compared to men changed since 1980? What do you think is the cause?
-
How is investing in the stock market similar to playing the two-thirds game?
-
The exclusive or operator ^ for boolean operands is defined to be true if they are different, false if they are the same. Give a truth table for this function.
-
Pappa's Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are...
-
Prove that \(\left(u_{n}ight)_{n \in \mathbb{N}} \subset \mathcal{L}^{2}(\mu)\) converges in \(\mathcal{L}^{2}\) if, and only if, \(\lim _{n, m ightarrow \infty} \int u_{n} u_{m} d \mu\) exists. [...
-
Alice Foyle, M.D. (lessee) has a non-cancelable 20-year lease with Brownback Realty, Inc. (lessor) for the use of a medical building. Taxes, insurance, and maintenance are paid by the lessee in...
-
The residual value is the estimated fair value of the leased property at the end of the lease term. (a) Of what significance is (1) an unguaranteed and (2) a guaranteed residual value in the lessees...
-
The residual value is the estimated fair value of the leased property at the end of the lease term. (a) Of what significance is (1) an unguaranteed and (2) a guaranteed residual value in the lessees...
-
Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the...
-
The accounting records of Allen Insulation, Inc. reflected the following balances as of January 1, 20x0: Beginning Inventory: $190 units @ $120 The following transactions occurred in 20x0: January...
-
Sarasota Limited has a calendar-year accounting period. The following errors were discovered in 2023. 1. The December 31, 2021 merchandise inventory had been understated by $50,400. 2. 3. Merchandise...
Study smarter with the SolutionInn App