Alina's Catering has a monthly target operating income of $16,000. Variable expenses are 40% of sales and monthly fixed expenses are $14,000. What is Alina's operating leverage factor at the target level of operating income?
Q: What are the variable expenses per unit on these financial accounting question?
A: To calculate the variable expenses per unit, we need to use the contribution margin (CM) ratio.…
Q: Gemini Store has operated with a 30% average gross profit ratio for a number of years. It had…
A: Concept of Gross Profit RatioThe gross profit ratio is a financial metric that represents the…
Q: Provide correct answer general Accounting question
A: Step 1: Define Accounts Receivable Turnover and Average Collection PeriodAccounts Receivable…
Q: Question: The 2020 balance sheet of Serena's Sports Gear, Inc., showed long-term debt of $4.5…
A: To calculate the firm's cash flow to creditors, we use the formula:Cash Flow to Creditors = Interest…
Q: Provide answer
A: Calculate Net Income FORMULA:Net Income = Sales * Profit MarginNet Income = $20,000,000 * 0.1023Net…
Q: ,During May, Schultz Company produced 12,000 units of a product called Premium. Premium has a…
A: Explanation of Materials Price Variance:Materials Price Variance measures the cost impact of the…
Q: You have been asked by the owner of your company to advise her on the process of purchasing some…
A: The methods that the owner can use to evaluate the decision to invest in expensive long-term…
Q: Newman Corporation sells one product, its waterproof hiking boot. It began operations in the current…
A: Concept of Absorption Costing:Absorption costing is a method of accounting where all manufacturing…
Q: Please provide answer this financial accounting
A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) ratio is a financial metric…
Q: Need Answer
A: Explanation of Book Value Per Share:The book value per share is a financial metric that calculates…
Q: Differential Chemical produced 18,000 gallons of Preon and 39,000 gallons of Paron. Joint costs…
A: SOLUTION:
Q: ??
A: Step 1:Return on equity (ROE) can be calculated using the DuPont formula -ROE=Net Profit Margin ×…
Q: Which account is considered a permanent account?
A: xplanation of Permanent Accounts: A permanent account is a type of account whose balance carries…
Q: Please give me true answer this general accounting question
A: To calculate the variable cost per unit using the high-low method, follow these steps: 1. Identify…
Q: Need help with this accounting questions
A: Step 1: Definition of COGSCost of Goods Sold (COGS) refers to the direct costs of producing goods…
Q: Give me Answer
A: Concept of Predetermined Overhead RateThe predetermined overhead rate is a calculated cost…
Q: A company has net income:50000
A: Formula for Return on Assets (ROA):ROA = (Net Income / Total Assets) * 100 Calculation:ROA =…
Q: Answer this Financial Accounting problem
A: Concept of Profit MarginProfit margin is a measure of a company's profitability and efficiency in…
Q: What is the estimated variable order filling cost component per order?
A: the variable order filling cost per order using the high-low method:Step 1: Identify the highest and…
Q: Wright Manufacturing incurred $40,000 of fixed costs and $60,000 of variable costs when 1,500 units…
A: Explanation of Cost Per Unit:Cost per unit is the total cost of producing one unit of a product,…
Q: Elara Manufacturing Inc. has provided the following financial data for the year: please answer the…
A: Step 1: Define Income Taxes OwedIncome Taxes Owed refer to the amount of tax a person or business is…
Q: Can you please answer this financial accounting question?
A: To evaluate Summit Styles' operating cash flow (OCF), investment in operating capital, and free cash…
Q: Estimate an investments future value?
A: The Capital Asset Pricing Model (CAPM) helps in determining the required rate of return based on the…
Q: Compute the portion of the joint costs to be allocated.
A: Explanation of Joint Costs:Joint costs are the shared expenses incurred in producing two or more…
Q: Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying…
A: First, we need to eliminate the investment in Spark Filter Company from Plug Products' books and the…
Q: ?!!
A: Explanation of Activity Cost Pool:An activity cost pool is a grouping of all costs associated with a…
Q: None
A: Explanation: In the given case, we are required to calculate the asset turnover ratio for Hartwell…
Q: Need answer
A: Explanation of Financing Activities: These are activities that involve obtaining or repaying…
Q: What is the P/E ratio ??? General Accounting question
A: The formula to calculate the price-earnings (P/E) ratio is: P/E ratio = Market Price per Share ÷…
Q: Provide accurate answer
A: Approach to solving the question: In order to get the predetermined overhead rate, we follow this…
Q: NO WRONG ANSWER
A: Explanation of Retained Earnings:Retained earnings represent the cumulative amount of net income…
Q: provide correct answer general accounting question
A: Step 1: Calculation of market price of the stockStep 2: Calculation of P/E ratio
Q: I want to correct answer general accounting
A: Step 1: Definition of Rental AllocationRental allocation refers to distributing rental expenses…
Q: The overhead for the year was?
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a calculated rate used…
Q: Financial accounting question
A: Step 1: Define Dividend Discount ModelThe Dividend Discount Model (DDM) is a method used to value a…
Q: None
A: To calculate Bicket's 2013 return on common stockholders' equity (ROE), use the formula:Return on…
Q: Can you help me with accounting questions
A: Step 1: Definition of Overall LiabilityThe overall liability for a loan includes the principal…
Q: Need Your Help
A: Explanation of Non-Current Assets:Non-current assets are long-term resources owned by a company that…
Q: What is the PE ratio for this financial accounting question?
A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) ratio measures the…
Q: Bucket's opereting leverage???
A: To calculate operating leverage, we need to use the following formula: Operating Leverage =…
Q: Need answer
A: Assets=Stockholders Equity+LiabilitiesCalculation of Beginning Stockholder's EquityBeginning…
Q: Step by step answer
A: What is the Sustainable Growth Rate (SGR)?The sustainable growth rate is the maximum rate at which a…
Q: Solve this financial accounting question
A: To find the proceeds Mason will receive, we need to calculate the discounted value of the note. The…
Q: Financial accounting question
A: To allocate the partnership's net income of $240,000 between Green and White based on their…
Q: Daud Company has an overhead application rate of 172% and allocates overhead based on direct…
A:
Q: Correct answer
A: Explanation of Joint Costs: Joint costs are expenses incurred in producing two or more products…
Q: ??!!!
A: To calculate the Price-to-Earnings (P/E) ratio, divide the stock price by the earnings per share…
Q: What is the answer?
A: We know that, Noncurrent assets are long-term assets that have a useful life of more than a year.…
Q: How much long term debt did the firm have? General accounting
A: Step 1: Define Accounting EquationThe accounting equation describes the relationship between the…
Q: Poonam's material quantity variance is favorable or unfavorable
A: Given:Standard usage = 1.5Actual units produced = 2,000Standard price = $6Formula:Material quantity…
Problem related to Accounting
Step by step
Solved in 2 steps
- Alina’s Catering has a monthly target operating income of $16,000. Variable expenses are 40% of sales and monthly fixed expenses are $14,000. What is Alina’s operating leverage factor at the target level of operating income? a. 0.40 b. 2.67 c. 1.875 d. 0.63. Answer this financial accounting questionWestern Repair Shop has a monthly target operating income of $50,000. Variable expenses are 55% of sales and monthly fixed expenses are $9,600. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Western Repair Shop's margin of safety as a percentage of target sales. 3. What is Western Repair Shop's operating leverage factor at the target level of operating income? 4. Assume that the repair shop reaches its target. By what percentage will Western Repair Shop's operating income fall if sales volume declines by 16%? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Target sales in dollars Margin of safety in dollars The margin of safety is $. (Round interim calculations up to the nearest whole dollar and your final answer up to the nearest whole dollar.) Break-even sales in dollars =Light Me Up Lamps has variable expenses of 40% of sales and monthly fixed expenses of $240,000. The monthly target operating income is $60,000. Compute the monthly margin of safety in dollars if Light Me Up Lamps achieves its operating income goal.
- Chawla Enterprises' fixed monthly expenses are $29,500, and its contribution margin ratio is 60%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $98,000? Don't use AIPlease give me answer Accounting questionKreter, Inc. earned net income of $300,000 last year. This year it wants to earn net income of $450,000. The company's fixed costs are expected to be $300,000, and variable costs are expected to be 70% of sales. Determine the required sales to meet the target net income of $450,000 using the mathematical equation. Required sales $ Using a CVP income statement format, prove your answer. Fixed costsTarget net income / (Loss)SalesVariable costsContribution margin $ Contribution marginFixed costsTarget net income / (Loss)SalesVariable costs Contribution marginSalesVariable costsFixed costsTarget net income / (Loss) Fixed costsVariable costsSalesTarget net income / (Loss)Contribution margin SalesFixed costsContribution marginVariable costsTarget net income / (Loss) $
- Please solve this question general accountingwhat are the variable expenses per unit?White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?
- what are the variable expenses per unit?Carter's Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of sales, and monthly fixed expenses are $8,000. Hint: The contribution margin ratio = 100%- Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Requirements = Margin of safety in dollars - X 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Carter's margin of safety as a percentage of target sales. 3. What is Carter's operating leverage factor at the target level of operating income? 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%? Print Done= Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Hint: The contribution margin ratio= 100% - Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. = Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) The margin of safety is Requirement 2. Express Adam's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Adam's operating leverage factor at the target level of operating income? Begin by identifying the…