A company has the following data: Sales = $500,000 Variable Costs = $300,000 Fixed Costs $100,000 What is the Degree of Operating Leverage (DOL) at the current level of sales?
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- 2. A company provided the following information: Sales Variable costs Fixed costs P500,000 P100,000 P200,000 | Required: A. What is the contribution margin ratio? 500,000 – 100,000 = 400,000 "Contribution Margin" 400,000/500,000 = 0.8 What is the level of sales in amount necessary to generate a profit of P40,000? C. What is the contribution margin ratio if the sales price is increased by 10%? Using the information in part C, what level of sales in amount is necessary to generate a profit of P40,000? D. B.What is the leverage fector for blue ridge Inc??What is the operating leverage?
- Consider the following information in your analysis of degree of operating leverage. Unit sales price Unit variable costs Total fixed costs Units sold REQUIRED: Compute for the following: 1. Degree of operating leverage (DOL) 2. The percentage change in operating income P 200 120 550,000 10,000 units 3. How much must be the increase in operating income if sales increase by 40%?• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?Financial accouinting