Question: Operating leverage Decatur Co. reports the following data: Line Item Description Amount Sales $693,600 Variable costs (423,100) Contribution margin $270,500 Fixed costs (217,500) Operating income

Operating leverage

Decatur Co. reports the following data:

Line Item Description Amount
Sales $693,600
Variable costs (423,100)
Contribution margin $270,500
Fixed costs (217,500)
Operating income $53,000

Determine Decatur Co.s operating leverage. Round your answer to one decimal place.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 Finance Questions!

Q:

Operating leverage Haywood Co. reports the following data: Line Item Description Amount Sales $6,160,000 Variable costs (4,620,000) Contribution margin $1,540,000 Fixed costs (440,000) Operating...

Q:

Decatur Co . reports the following data: Line Item Description Amount Sales $ 8 5 8 , 5 0 0 Variable costs ( 4 9 7 , 9 0 0 ) Contribution margin $ 3 6 0 , 6 0 0 Fixed costs ( 2 4 0 , 4 0 0 )...

Q:

HELP ASAP PLEASE!!! Operating Leverage Decatur Co. reports the following data: Determine Decatur Co.'s operating leverage. Round your answer to one decimal place. High-Low Method The manufacturing...

Q:

Operating Leverage Decatur Co. reports the following data: Sales Variable costs $668,700 (421,300) $247,400 (188,500) Contribution margin Fixed costs Operating income $58,900 Determine Decatur Co.'s...

Q:

Operating Leverage Decatur Co. reports the following data: Sales $892,800 Variable costs (562,500) Contribution margin $330,300 Fixed costs (223,800) Operating income $106,500 Determine Decatur Co.'s...

Q:

Operating Leverage Decatur Co. reports the following data: Sales Variable costs Contribution margin $865,900 (493,600) $372,300 (283,700) $88,600 Fixed costs Operating income Determine Decatur Co.'s...

Q:

Spartan Company, operating at full capacity, sold 1,000,000 units at a price of $200 per unit during the current year. Its income statement is as follows: Line Item Description Amount Amount Sales...

Q:

List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...

Q:

Hi There, I need someone to help me with the attached finance worksheet. There are 3 problems in this excel file - one problem on each individual tab. I am attaching a couple of additional files as...

Q:

125(3) Q1. If sales are $820,000, variable costs are 68% of sales, and operating income is $260,000, what is the contribution margin ratio? a. 53% b. 38% c. 47% d. 32% Q2. Which of the following...

Q:

You want to have $3.5 million in real dollars in an account when you retire in 50 years. The nominal return on your investment is 8 percent and the inflation rate is 3.5 percent. What real amount...

Q:

What is the relationship of operations management to overall organizational strategy? Where do productivity and quality fit into that relationship?

Q:

Please look at the dataset on the screenshot and identify the attribute type of each attribute in my dataset { Size , Weight, Sweetness, Crunchiness......... } as ( nominal , ordinal, interval or...

Q:

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

Q:

You were recently promoted to a management position. One of your first tasks is to discipline one of your staff for an ongoing tardiness problem. What information do you need prior to the discipline...

Q:

Your professor is dealing with a case where a student was alleged to have cheated on the final exam. Would documentation be important? If so, what type of documentation would be necessary?

Q:

What does John Jacak in the HRM Close-up say are the most important aspects in a privacy policy?