I need answer of this question accounting Assume that the amounts of the company's total variable expenses and total fixedexpenses were reversed. In other words, assume that the total variable expensesare $6,952 and the total fixed expenses are $12,400. Given this scenario, andassuming that total sales remain the same, calculate the degree of operatingleverage. Using the calculated degree of operating leverage, what is the estimatedpercentage increase in net operating income of a 4% increase in sales? (Do notround intermediate calculations. Round your answer to 2 decimal places.)Oslo Company prepared the following contribution format income statementbased on a sales volume of 1,000 units (the relevant range of production is 500units to 1,500 units):Sales $ 26,000Variable expenses 14,000Contribution margin 12,000Fixed expenses 7,800Net operating income $ 4,200

Step 1: Define Degree Of Operating LeverageThe degree of operating leverage is a financial ratio…

Answered: Assume that the amounts of the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Crane Company is considering two alternatives. Alternative A will have revenues of $149,100 and costs of $101,400. Alternative B will have revenues of $170,000 and costs of $125,400. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs Net Income $ Alternative A is better than Alternative B Net Income Increase (Decrease)
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Cullumber Company is considering two alternatives. Alternative A will have revenues of $147,300 and costs of $101,600. Alternative B will have revenues of $185,100 and costs of $122,800. Compare Alternative B to Alternative A showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs Net Income +A Alternative A ☑ is better than A Alternative B $ Net Income Increase (Decrease) $
Using the following data, estimate the new Return on Investment if there is a 7% increase in sales - with average operating assets as the base. Sales $2,354,696 Contribution margin 44% Controllable 339,947 fixed costs Average operating $5,230,380 assets Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.

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