The following monthly data in contribution format are available for the Ross Company and its only...
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The following monthly data in contribution format are available for the Ross Company and its only product. Product SD: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ $ $ $ $ 224.000 177.800 46,200 34.500 11,700 Per Unit $ 160 127 33 $ company produced and sold 1.400 units during the month and had no beginning or ending inventories, a) What is the current operating leverage? b) Projections indicate that the market will contract by 15% next month. What is the projected net operating income given this increase? The following monthly data in contribution format are available for the Ross Company and its only product. Product SD: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ $ $ $ $ 224.000 177.800 46,200 34.500 11,700 Per Unit $ 160 127 33 $ company produced and sold 1.400 units during the month and had no beginning or ending inventories, a) What is the current operating leverage? b) Projections indicate that the market will contract by 15% next month. What is the projected net operating income given this increase?
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a Operating leverage is the degree to which a company uses fixed costs in its operations A higher op... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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