I want to correct answer accounting questions ABC Manufacturing has the following financial data: Sales:$250,000 Variable expenses: $150,000 (60% of sales) Contributionmargin: $100,000 (40% of sales) Fixed expenses: $60,000 Netoperating income: $40,000Calculate:1. The degree of operating leverage2. The impact on net operating income if sales increase by 15%"

Step 1: Definition of TermsDegree of Operating Leverage (DOL): The degree of operating leverage…

Answered: ABC Manufacturing has the following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...

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Similar questions

If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600000. What is the return on investment for Division A? A. 20% B. 25% C. 33% D. 40%
Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
Please given answer general accounting
Subject:- Accounting
1. Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company, 2. assuming that sales revenue is increases by 10 percent, find out the net income of ABC Company.
The following information is for Gable, Inc. and Harlowe, Inc. for the recent year. Harlowe, Inc. $800,000 200,000 600,000 400,000 $200,000 Sales Variable costs. Contribution margin Fixed costs Income from operations Gable, Inc. $800,000 400,000 400,000 200,000 $200,000 What total amount of net income will Harlowe, Inc. earn if it experiences a 10 percent increase in revenue?
BR Company has a contribution margin of 15%. Sales are $633,000, net operating income is $94,950, and average operating assets are $143,000. What is the company's return on investment (ROI)? Multiple Cholce 4.4% 15.0% 66.4% 0.2%
What is the operating leverage for this general accounting question?
Riverside manufacturing has a contribution margin ratio solve this accounting questions
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $295,300 $834,000 Variable costs 118,500 500,400 Contribution margin $176,800 $333,600 Fixed costs 124,800 194,600 Income from operations $52,000 $139,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ % c. The difference in the of income from operations is due to the difference in the operating leverages. Beck Inc.'s operating leverage means that its fixed costs are a percentage of contribution margin than are Bryant Inc.'s.
Assume the following information: \table[[,Amount,Per Unit],[Sales,$300,000,$40

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