Question: Based on the following operating data, what is the operating leverage? a. 0.8 b. 1.2 c. 1.8 d. 4.0 Sales...... Variable costs Contribution margin..... Fixed

Based on the following operating data, what is the operating leverage? Sales...... Variable costs Contribution margin..... Fixed costs..... Operating income.. $ 600,000 (240,000)

a. 0.8

b. 1.2

c. 1.8

d. 4.0

Sales...... Variable costs Contribution margin..... Fixed costs..... Operating income.. $ 600,000 (240,000) $360,000 (160,000) $ 200,000

Step by Step Solution

★★★★★

3.44 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

c The operating leverage is 18 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting 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...

Based on the following operating data, the operating leverage is (Round your answer to 2 decimal places): Sales Variable costs Contribution margin Fixed costs Income from operations $750,000 389,000...

Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two...

D E Operating Leverage 10) Calcluate the degree of Operating Leverage for Companies C, D and E Sales Variable Costs Contribution Margin Fixed Costs Net Income Degree of Operating Leverage 500,000...

Jen & Berry's sold 100,000 pints of ice cream last month according to the following contribution format income statement JURG MARIE Per Units SALES VARIABLE COSTS CONTRIBUTION MARGIN FIXED COSTS NET...

Tasty Time Cafeteria operates cafeteria food services in public buildings in the Midwest. Tasty Time is contemplating a major change in its cost structure. Currently, all of their cafeteria lines are...

EXHIBIT 14.4 Breakdown of Total Operating Income Variance SCHMIDT MACHINERY COMPANY Analysis of Financial Results For October 2019 (2) (3) Flexible-Budget Flexible Variances Budget (1) (4) Sales...

EXHIBIT 14.4 Breakdown of Total Operating Income Variance SCHMIDT MACHINERY COMPANY Analysis of Financial Results For October 2019 (1) (2) (3) Flexible-Budget Variances Flexible Budget (4) Sales...

1. Discuss what is meant by subject matter jurisdiction. When does a court have the ability to hear a case? Can a court decline to hear a case? Discuss why, if Mary is in a car accident in new...

The 1HNMR spectrum of the alkyl bromide used to make the ylide to form a compound with molecular formula C11H14 is shown below. What product is obtained from the Wittig reaction? 10 (ppm) frequency

When Pete purchases $ 1 0 , 0 0 0 in stock by using $ 6 , 0 0 0 of his own money and borrowing the remaining $ 4 , 0 0 0 from his broker, he is buying stock

Define consumer addiction and give two examples of it.

The following balance sheet data for Finn Company are shown below. a. Determine the working capital and current ratio for 2012 and 2011.b. Does the change in the current ratio form 2011 to 2012...

Beacon Company maintains and repairs warnings lights, such as those found on radio towers and lighthouses. Beacon Company prepared the end-of-period spreadsheet shown on the next page at October 31,...

For the past several years, Shane Banovich has operated a part-time consulting business from his home. As of October 1, 2012, Shene decided to move to rented quarters and to operate the business as...

Database Management Systems (DBMS)= S/W used to build the database. Select all available DBMS Examples: Json Format DB2 MySQL Access SQL Language C\# SQL Server

Molecule A is diffusing in solvent B . Name 4 properties / parameters of the system that impact the value of the diffusion coefficient of A diffusing in B ?

The Python library we used to plot the chart in video / lab is