Question: Frank Corp sells units for $50, has unit variable costs of $20, and fixed costs of $300,000. If Frank sells 15,000 units, what is its

Frank Corp sells units for $50, has unit variable costs of $20, and fixed costs of $300,000. If Frank sells 15,000 units, what is its degree of operating leverage?

Step by Step Solution

★★★★★

3.40 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To determine the degree of operating leverage DOL we need to understand how it is calculated The DOL ... 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 Accounting Questions!

Beachcomber Treasures has determined that its degree of operating leverage (DOL) is 3.5 and its degree of financial leverage (DFL) is 2.0. (a) What is Beachcombers degree of total leverage (DTL)? (b)...

A firm has determined that its degree of operating leverage (DOL) is 5 and that its degree of financial leverage (DFL) is 2. As a result, what will be the change in its expected EPS if sales are 7...

Operating leverage measures a company s fixed costs as a percentage of its total costs It is used to evaluate the break even point of a business as well as the likely profit levels on individual...

Frontier Corp. sells units for $36, has unit variable costs of $10, and fixed costs of $106,000. If Frontier sells 10,000 units, what is its degree of operating leverage? rev: 12_17_2019_QC_CS-194118...

Klein Company distributes a high-quality bird feeder that sells for $50 per unit. Variable costs are $20 per unit, and fixed costs total $480,000 annually - The president expects sales to increase by...

answer show solution 60% 146, 00 40% Problem 4/Comprehensive Exercise): Baguio, Inc. produces only one product, berry baskets, low, 40% of which it sells for P72 each. Unit variable costs are P32 and...

Kyle & Ostrowsky Inc., a manufacturer of championship caliber trophies, sells their product for $50 per unit. Variable costs are 60% of the selling price, and comapny has fixed costs that amount to...

Klein Company distributes a high-quality bird feeder that sells for $40 per unit. Variable costs are $16 per unit, and fixed costs total $360,000 annually. Required: Answer the following independent...

The firm's fixed costs are $100 000, variable cost per unit is $10 and selling price per unit is $30. The break-even point in units is Select one: 20 000 10 000 5 000 3 333 Sentosa Products Sentosa...

Klein Company distributes a high-quality bird feeder that sells for $55 per unit. Variable costs are $22 per unit, and fixed costs total $510,000 annually. Required: Answer the following independent...

The Pediatric Department of Emory Hospital operates as an individual business unit. The department rents space and beds from Emory Hospital, and accordingly receives charges related to janitorial,...

If the returns of two stocks have a correlation of 1, what does this imply about the relative movements in the stock prices?

For Problems 1 4 - 1 8 , consider the following balance sheet items: office equipment, retained earnings, cash, accounts payable, inventory, land, trademarks. 1 4 . Which are current assets? 1 5 ....

Allison Cooper opened Allisons Toy House. As her newly hired accountant, your tasks are to do the following: 1. Journalize the transactions for the month of October. 2. Record to subsidiary ledgers...

How does the Drive-through process decrease throughput time when compared with a conventional Quick Service Restaurant?

Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Wilson Products...

Thirty-six percent of all Americans drink bottled water more than once a week (Natural Resources Defense Council, December 4, 2015). Suppose you have been hired by the Natural Resources Defense...

Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: The company has a traditional costing system in which...

2. Consumer surplus for an individual and a market The following graph plots Andrew's monthly demand curve (blue line) for cupcakes. The point denoted by A gives a point along his monthly demand...

1) Booble, Inc. has a contribution margin ratio of 45%. This month, sales revenue was $200,000, and profit was $40,000. How much are Booble's fixed costs? 2)Arnold Corp has a selling price of $15,...

Answer all these questions with the right answer letter next to each question number 12-Jasper Enterprises had the following cost and production information for April: Units Produced 20,000 Units...

Frontier Corp. sells units for $54, has unit variable costs of$29, and fixed costs of $141,000. Frontier sells 10,000 units. Ifsales increase 22%, by how much will profits increase? MultipleChoice...

help asap plz! will like Frontier Corp. has a contribution margin of $1,800,000 and profit of $600,000. What is its degree of operating leverage? Multiple Choice 0.33 3.67 5.50 3.00 Frontier Corp....

Frontier Corp. sells units for $49, has unit variable costs of $24, and fixed costs of $144,000. Frontier sells 10,000 units. If sales increase 18%, by how much will profits increase?

Frontier Corp. sells units for $40, has unit variable costs of $12, and fixed costs of $133,000. Frontier sells 10,000 units. If sales increase 24%, by how much will profits increase?r Multiple...