Answered: Alpine Industries sells a single…

Alpine Industries sells a single product. Its annual revenue is $2,400,000, and its profit is $120,000. Fixed costs amount to $480,000. Compute Alpine's operating leverage.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: Please provide correct answer financial accounting question with correct solution step by step

A: Step 1: Define Stock Valuation (Gordon Growth Model)Stock valuation using the Gordon Growth Model…

Q: Calculate the ending inventory using the lower-of-cost-or-market method.

A: Concept of Lower-of-Cost-or-Market (LCM):The lower-of-cost-or-market method is a conservative…

Q: Please help me solve this general accounting question using the right accounting principles.

A: Step 1: Definition of Profit MarginProfit Margin is a financial ratio that measures how much of…

Q: Can you solve this general accounting problem using appropriate accounting principles?

A: Step 1: Definition of EquityEquity represents the residual interest in the assets of a business…

Q: Determine the materials price variance and materials quantity variance.

A: Concept of Standard Price:The standard price is the predetermined or expected cost of a unit of raw…

Q: Explain the difference between the accrual basis and cash basis of accounting. What are the…

A: Explanation Of Accrual Basis AccountingAccrual basis accounting records revenues when they are…

Q: What was the ball cost of goods manufactured for the month?

A: Explanation of Raw Materials Used:Raw materials used refer to the direct materials consumed in the…

Q: Standard costing is best suited for_? a) Retail operations b) Custom orders c) Service industries d)…

A: Explanation of Standard Costing:Standard costing is an accounting method that assigns predetermined…

Q: Can you help me solve this general accounting question using the correct accounting procedures?

A: To find the company's earnings per share (EPS) using the price-to-earnings (P/E) ratio, use this…

Q: Provide Answer

A: To compute the predetermined overhead rate as a percent of direct labor and direct materials, we…

Q: Financial Accounting Question need help

A: Step 1: Define Return on Equity (ROE)Return on Equity (ROE) is a measure of financial performance…

Q: I need assistance with this general accounting question using appropriate principles.

A: Step 1: Definition of Stockholders' EquityStockholders' equity is the residual interest in the…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: To compute the rate of return, use this formula: Rate of Return = (Ending Value - Beginning Value +…

Q: On January 3, 2020, Lennox Corporation acquired equipment for $120,000. The estimated life of the…

A: Concept of Cost of Equipment:This is the initial purchase price of a long-term asset, including all…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Step 1: Definition of Cost of Goods Manufactured (COGM)Cost of Goods Manufactured (COGM) refers to…

Q: Can you explain the process for solving this financial accounting problem using valid standards ?

A: To calculate the Investment in Minor Inc. balance on Mega Corp.'s books using the equity method,…

Q: What is the number of units transferred to finished goods during the year?

A: Step 1: Definition of Weighted Average MethodThe Weighted Average Method is a process costing…

Q: What is the level of sales in units required to achieve a net income of 18 percent of sales?

A: Concept of Sales Revenue:Sales revenue is the total income a business generates from selling goods…

Q: Please explain the solution to this general accounting problem with accurate principles.

A: To find the break-even point in units, use the formula: Break-even point = Fixed Costs / (Selling…

Q: Suppose Vanessa Sound had sales of $448,000 and sales returns of $52,000. Cost of goods sold was…

A: Explanation of Sales: Sales represents the total revenue generated from the company's primary…

Q: Accurate Answer

A: What We're Solving:What was Hudini's actual variable overhead cost last quarter? Given:Units…

Q: Choice correct answer with accounting question

A: Step 1: Definition of Operating LeverageOperating Leverage is a financial ratio that measures how…

Q: Please explain the solution to this general accounting problem with accurate principles.

A: Step 1: Define Relevant CostRelevant cost refers to any future cost that will differ between…

Q: What is the correct option? General accounting question

A: Step 1: Define Profit MarginProfit Margin is a financial ratio that shows the percentage of revenue…

Q: A retail store's cost of goods sold is $210,000, and its desired gross profit rate is 30% on sales.…

A: Explanation of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) refers to the direct costs…

Q: Step by step solution

A: Calculation of Total Variable CostTotal Variable Cost = Supplies + Laundry…

Q: Help

A: Explanation of Inventory:Inventory refers to the goods a company holds for the purpose of resale or…

Q: Don't use chatgpt when answering.

A: To compute the manufacturing overhead rate, we use the predetermined overhead rate formula based on…

Q: Please provide the accurate answer to this general accounting problem using valid techniques.

A: Step 1: Definition of EquityEquity represents the residual interest or ownership in the assets of a…

Q: Can you solve this financial accounting problem using appropriate financial principles?

A: Step 1: Definition of Capital Gain RateCapital Gain Rate refers to the percentage increase in the…

Q: Need help this question accounting question

A: Step 1: Definition of Each VarianceThe Direct Labor Rate Variance measures the difference between…

Q: Iveron Biotech is evaluating its Dermacuredivision, an investment center. The division has a $75,000…

A: Step 1: Definitions Concept of Return on Investment (ROI):Return on Investment (ROI) measures how…

Q: Please explain the solution to this financial accounting problem with accurate principles.

A: Step 1: Define Return on Equity (ROE)Return on Equity (ROE) measures a company's profitability in…

Q: Financial Accounting

A: to calculate the effective tax rate on your share of Delta Systems' corporate earnings:1. Calculate…

Q: Complete the total manufacturing costs

A: To compute Total Manufacturing Costs, you use the formula: Total Manufacturing Costs = Direct…

Q: I am trying to find the accurate solution to this financial accounting problem with the correct…

A: Step 1: Define Net IncomeNet income is the profit a company earns during a period after subtracting…

Q: A company reports an accounts receivable turnover of 12.2 times for the year. What is the average…

A: Step 1: Definition of Days' Sales in ReceivablesDays' Sales in Receivables—also known as the average…

Q: Accounting problem

A: Step 1: Definition of Standard Manufacturing Overhead RateThe Standard Manufacturing Overhead Rate…

Q: Can you demonstrate the accurate steps for solving this financial accounting problem with valid…

A: Step 1: Define Stockholders' Equity at Year-EndStockholders' equity at year-end reflects the…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Production Budget A production budget outlines the number of units that must…

Q: Need answer

A: Explanation of Risk-Pattern Mapping: Risk-pattern mapping is a systematic approach that identifies…

Q: Please provide the answer to this general accounting question using the right approach.

A: To calculate the cost of ending inventory using the weighted-average inventory method, follow these…

Q: Need help financial accounting

A: To find the required rate of return on Greenfield Corp.'s stock, we use the Capital Asset Pricing…

Q: Hello tutor solve this question and accounting question

A: Step 1: Definition of Internal Growth RateThe Internal Growth Rate (IGR) is the maximum rate at…

Q: help me

A: Step 1: Definition of LiabilitiesLiabilities represent the financial obligations or debts of a…

Q: 5 POINTS

A: To solve this problem, we need to use the following formula for net fixed assets: Ending Net Fixed…

Q: I need help with question is correct answer and financial accounting question

A: To calculate the interest Taylor Enterprises will receive at maturity on the 12-month CD, use the…

Q: Financial Accounting Question please answer

A: Step 1: Define MarginConcept of Margin - In managerial accounting, margin refers to the percentage…

Q: Direct labour cost variance: Valora Furnishings sets a standard material cost of $6.60 per chair,…

A: Explanation of Standard Cost: Standard cost is a predetermined cost that a company assigns to a…

Q: The installation of a ______ system will create confidence in the minds of public about the…

A: A costing system helps in determining the actual cost of products and services. This system tracks…

Question

Hello tutor solve this question and accounting question

Alpine Industries sells a single product. Its annual revenue is $2,400,000, and
its profit is $120,000. Fixed costs amount to $480,000.
Compute Alpine's operating leverage.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Kingston Enterprises sells a single product. Its annual revenue is $1,400,000, and profit is $75,000. Fixed costs amount to $320,000. What is its operating leverage?
Need help this question answer
Provide answers
Give me answer please
Morgan & Co. sells a single product. Its annual revenue is $1,500,000 and profit is $80,000. Fixed costs amount to $320,000. What is its operating leverage?
Subject:- general accounting
Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. Find the firm’s operating breakeven point in units. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($)”, and then graph the firm’s sale revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating breakeven point and the areas of loss of profit (EBIT).
Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. a. Find the firm’s operating break-even point in units. b. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($),” and then graph the firm’s sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating break-even point and the areas of loss and profit (EBIT).
general accounting
Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).
what is its operating leverage accounting question
General accounting