Sweet Berry Farm Corporation's current sales are $500,000. The contribution margin is $300,000 and the net operating

Fantastic news! We've Found the answer you've been seeking!

Question:

Sweet Berry Farm Corporation's current sales are $500,000. The contribution margin is $300,000 and the net operating income is $100,000. What is the company's degree of operating leverage?

Related Book For answer-question

Accounting Tools for business decision making

ISBN: 978-0470095461

4th Edition

Authors: kimmel, weygandt, kieso

See More Books

Posted Date: Feb 28, 2024 12:09 AM

See More Questions

COP-26 Inc. is a company that finds alternative uses of waste. The companys statement of financial position on April 30 is as follows: COP- 26 Inc. Statement of Financial Position April 30, 2021...
An appreciation of cost behavior is needed in order for management to understand and predict profitability as the costs of material, labor and other operating expenses and levels of production and...
Changes in Cost Structure; Break-Even Analysis; Operating Leverage; Margin of Safety Morton Companys contribution format income statement for last month is given below: The industry in which Morton...
Consider an investor's choice of a farm unit in the Corn Belt, one in the California Central Valley, or the one in the Great Plains region. An investor added these three assets in one portfolio. The...
What is meant by the period of a pendulum?
A student returning from Europe changes his French francs and Swiss francs into U.S. money. If he receives $11.91 and has received 17e for each French franc and 48 for each Swiss franc, how much of...
Climate Change In July 2015, a poll asked a random sample of 1,236 registered voters in Iowa whether they agree or disagree that the world needs to do more to combat climate change. The results show...
1. How do information technologies contribute to the business success of Sew What? Inc.? Give several examples from the case regarding the business value of information technology that demonstrate...
Give two examples of errors which could occur when transposing information from source documents to journals. Explain what the flow-on effects of these could be if not detected immediately. Also...
What is information systems analysis and design?
Willard Industries Plc. Trial Balance as at December 31, 2023, is shown below: 000 Revenue Administrative expenses Selling and Distribution expenses Legal and Professional expenses Allowance for...
Sam Martinez is seeking to invest a portion of his considerable assets in the "independent" electric power production industry in California, a sector projected to experience very rapid growth in the...
Examine the VACf. What does that statistic tell you about the forecasted variance for the project at completion? Will the project end up over budget or under budget? Are there any activities along...
A race car has a mass of 710 kg. It starts from rest and travels 40.0 m in 3.0 s. The car is uni- formly accelerated during the entire time. What net force is exerted on it?
A steam power plant is to generate 200 MW of power by combustion of natural gas. The available fuel can produce 5 10 9 kJ/hr from heat of combustion. The available cold reservoir is a nearby lake,...
Consider the following regression estimates (FN3) Linear regression Number of obs F(1, 498) = = | || || 500 163.13 0.0000 0.2880 593.03 Prob > F R-squared = Root MSE = Robust income Coef. Std. Err. t...
Purpose of Assignment The purpose of this assignment is to increase learners comprehension of the performance management process. Each team member should pick his or her own organization where he or...
Suppose that you are part of a virtual team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline). Assuming that you cannot visit...
Many of you will work for a small business. Some of you will even own your own business. In order to operate a small business, you will need a good understanding of managerial accounting, as well as...
Employee earnings records for Carnahan Company reveal the following gross earnings for four employees through the pay period of December 15. C. Mendez $93,500 D. Roberts $99,100 L. Church $98,600 T....
Brad Watters believes that the allocation of cost of goods available for sale should be based on the actual physical flow of the goods. Explain to Brad why this may be both impractical and...
The position vector along a trajectory expressed in terms of the scalar distance $s$ from the origin is given by the relation $\mathbf{r}=\mathbf{a} s^{2}+\mathbf{b} s+\mathbf{c}$, with the...
A particle moves on a predetermined trajectory with the equation of motion $s(t)=k t^{2}$, with $k$ constant and with magnitude of the acceleration equal to $a=2 k$. Show by using (3.74) that...
A particle is constrained to move on a circular guideway of radius $R=3.00 \mathrm{~m}$, on which it can slide without friction, according to the motion equation law $s(t)=k t^{3}$, with \(k=2.0...

Sweet Berry Farm Corporation's current sales are $500,000. The contribution margin is $300,000 and the net operating

Question:

Expert Answer:

The degree of operating leverage DOL is calculated by dividing the percentage change in net ope... View the full answer

Accounting Tools for business decision making

Students also viewed these accounting questions