Please give me answer general 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

1) Degree of operating leverage = Contribution margin / Net operating income Given:Total variable…

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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Which of the following is true regarding the contribution margin ratio of asingle product company? a. As fixed expenses decrease, the contribution margin ratio increases b. The contribution margin ratio increases as the number of units sold increase c. The contribution margin ratio multiplied by the variable expense per unit equals thecontribution margin per unit d. If sales increase, the peso increase in net operating income can be computed bymultiplying the contribution margin ratio by the peso increase in sales
Which of the following is true regarding the contribution margin ratio of a single product company? As fixed expenses decrease, the contribution margin ratio increases. The contribution margin ratio multiplied by the variable expense per unit equals the contribution margin per unit. The contribution margin ratio increases as the number of units sold increases. If sales increase, the dollar increase in net operating income can be computed by multiplying the contribution margin ratio by the dollar increase in sales.
Please, use these formulas that are in the image only.
the question is in the attached pictures
f net profit of the firm is OMR 280,000 and capital employed is OMR 1,400, 000 the return on capital employed will be 20%. During inflation with net profit calculated with replacement cost is OMR 180,000 and capital employed is OMR 22,00,000 the return on capital employed will be 8.2%. This situation expresses the following problem. a. Under historical cost accounting, the profits are overstated, and fixed assets are understated specially when there is increase in the price of the old fixed assets. b. Under historical cost accounting, return on capital employed which is very useful for the valuation of the business by its owners, creditors and management will not be correct and may lead to misleading decision c. Both the given statements are true in the given situation d. Both the given statements are false in the given situation
During the current year, XYZ Company increased its variable SG&A expenses while keeping fixed SG&A expenses the same. As a result, XYZ's: a) Contribution margin and gross margin will be lower. b) Contribution margin will be higher, while its gross margin will remain the same. c) Operating income will be the same under both the financial accounting income statement and contribution income statement
1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. Use the same format as shown above. What is Crossfire’s net operating income (loss) in your new segmented income statement? 5. Do you think that Crossfire should allocate its common fixed expenses to the East and West regions when computing the break-even points for each region?
Using these formulas: 1-Breakeven Point Formula: FC Q = P – vc 2-Degree of Operating Leverage (DOL): Percentage change in EBIT Percentage change in sales DOL 3-The formula for calculating the degree of operating leverage at a base sales level, Q, is the following: QX (P- vc) QX (P– vc) – FC Q: the sales level. P: sale price. vc: variable operating costs per unit. DOL(Q) = %3D FC: fixed operating costs. 4-The Degree Of Financial Leverage (DFL): Percentage change in EPS Percentage change in EBIT DFL EBIT DFL at base level EBIT - EBIT - I- (PD x 5-degree of total leverage (DTL) Percentage change in EPS Percentage change in sales DTL = QX (P- vc) PD Q x (P – vc) – FC –-1-) DTL at Q units =
Using the ratio definitions from Exhibit 4.6, calculate the financial ratios for the Boeing Company and determine whether the company is a good investment. Assume an effective tax rate of 20 percent
For the period just ended, Trek Corporation's Trailer Division reported profit of $54 million and invested capital of $450 million. Assuming an imputed interest rate of 10 per cent, calculate Trailer’s return on investment (ROI) and residual income. Explain what each calculation of ROI and RI means for Trek
I need this general account qualification please not use gpt..
From the information provided in the table (i) Calculate EBIT, Fixed Cost, Variable cost and Profit after tax for Company A and S as per financial data given below. (ii) Comment on the Operating and Financial risk for both the firms. Give reasons for your answer. Particulars A S Variable Expenses as a percentage of sales 75% 50% Interest Expense in Amount Rs. 300 1000 Degree of Operating Leverage 6 2 Degree of Financial Leverage 4 2 Income Tax Rate 35% 35%

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