Atlas Corporation reports a total contribution margin of $75,000 and pretax net income of $25,000 for the current quarter. The degree of operating leverage is: a) 3.0 b) 0.33 c) 1.5 d) 2.0 e) 300%
Q: What is the actual total direct materials cost for the current period
A: Concept of Standard Direct Materials Cost:Standard direct materials cost is the predetermined or…
Q: Isla Innovations purchased a patent on 1 August 2020 for $360,000. The economic benefits were…
A: Explanation of Patent: A patent is an intangible asset that grants the owner exclusive legal rights…
Q: What is the maturity value?
A: To calculate the maturity value of a note, we use the formula: Maturity Value=Principal+Interest…
Q: Answer this Question
A: The Price-to-Earnings (P/E) ratio is a financial metric that measures the relationship between a…
Q: What is total assests in this q
A: The debt-equity ratio is a financial ratio indicating the relative proportion of shareholders'…
Q: What are the main tools for monitoring and controlling costs in an organization?
A: 1. BudgetingBudgeting is one of the most widely used tools for cost control. It involves creating…
Q: 1. Which financial statement reports a company’s financial position at a specific point in time?a)…
A: b) Balance SheetThe balance sheet reports a company's financial position at a specific point in time…
Q: What is financial accounting? tell me how it is useful?
A: What is Financial Accounting?Financial accounting is the process of recording, summarizing, and…
Q: Accounting problems
A: Step 1: Definition of Net PayNet pay is the amount an employee takes home after all deductions have…
Q: General accounting question
A: Step 1: Definition of Debt-to-Equity RatioThe debt-to-equity ratio measures a company's financial…
Q: In September, a processing department at Omega Corporation had an ending work in process inventory…
A: Step 1: Definition of Beginning Work in Process InventoryBeginning Work in Process (WIP) Inventory…
Q: What was the average collection period in days
A: Explanation of Accounts Receivable:Accounts receivable represents the amount of money a company is…
Q: Choose the correct option
A: Step 1: DefinitionsExplanation of Overhead Costs:Overhead costs are indirect costs that support…
Q: The difference between a company's sales and cost of goods sold is referred to as the: a. gross…
A: Step 1: Definition of Gross ProfitGross Profit is the amount remaining after subtracting the cost of…
Q: what is the total overhead variance? accounting question
A: Step 1: Definition of Total Overhead VarianceTotal Overhead Variance is the difference between the…
Q: find the lab or price variance
A: Step 1: Definition of Labor Price VarianceLabor Price Variance measures the difference between the…
Q: Hi expert please give me answer general accounting
A: Depreciation expense per mile = (Cost - Salvage value) / Total number of miles expected to be…
Q: Need help with this question solution general accounting
A: Step 1: Definition of Shareholder EquityShareholder Equity represents the owners' claim on the…
Q: Solve this Accounting Problem
A: Provided Data:High activity (May): 56,000 units, Cost = $162,600Low activity (November): 18,000…
Q: Hi expert please give me answer general accounting question
A: Step 1: Definition of Cash ReceiptsCash Receipts refer to the actual inflows of cash into a business…
Q: Galaxy Pens Ltd. produces pens at a factory designed to produce 15 million pens per year. In 2023,…
A: Step 1: Definition of Inventory Cost Related to Fixed Production OverheadThe inventory cost related…
Q: A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per…
A: We can determine the price per unit using the following steps: Step 1: Calculate the Total Fixed…
Q: Provide currect answer
A: Concept of Sales Revenue:Sales revenue is the total amount earned from selling goods or services…
Q: Solve this cogs problem..
A: The Cost of Goods Sold (COGS) is calculated using the following formula:COGS = Beginning Inventory +…
Q: Quick answer of this accounting
A: Step 1: Definition of Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures…
Q: The net realizable value and inventory
A: Step 1: Definition of Net Realizable Value (NRV)Net realizable value (NRV) is the estimated selling…
Q: Financial accounting problem i need soln.
A: Return on Equity (ROE) is calculated using the formula:ROE = (Net Income / Shareholders' Equity) ×…
Q: Financial Accounting
A: Step 1: Definition of Disposal of AssetThe disposal of an asset involves removing the asset from the…
Q: Answer
A: Calculation of Total ContributionTotal Contribution = Units Sold x (Selling Price - Variable Cost)…
Q: Financial accounting
A: Step 1: Define Direct Materials Price VarianceThe Direct Materials Price Variance measures the…
Q: What would the price?
A: To find the price, we'll follow these steps:Calculate Fixed Costs:Given the total cost per unit at…
Q: A fertilizer manufacturing company has an industry average P/E ratio of 20. The company's earnings…
A: Given:P/E ratio = 20EPS = $6.50 Formula:Share price = P/E ratio * EPSShare price = 20 * 6.5…
Q: I want the correct answer with accounting
A: Step 1: Definition of Profit Margin The profit margin is a financial ratio that represents the…
Q: General accounting questions
A: Step 1: Introduction to notesNotes are also known as promissory notes which are a sort of debt…
Q: (ROE)?
A: To calculate the Return on Equity (ROE), we use the DuPont formula: ROE=Profit Margin×Total Asset…
Q: Answer for #2 and #3 cannot be the following:11,00012748.141469282505610
A: Below the correctly calculate the depreciation expense for 2025 and prepare the correct journal…
Q: What was the cost of the item to company X?
A: To find the cost of the item to Company X, we can set up an equation.Let C represent the cost of the…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Straight-Line DepreciationStraight-Line Depreciation is a method of…
Q: What is its ROE?
A: To calculate the Return on Equity (ROE) for the firm, we can use the DuPont analysis formula, which…
Q: General accounting question
A: Step 1: Definition of Net IncomeNet Income is the profit a company earns after deducting all costs,…
Q: Calculate alec Baldwin's taxable income
A: Explanation of Accumulated Earnings and Profits: Accumulated Earnings and Profits (E&P)…
Q: Use this information to determine how much cash will increase (decrease) during April on these…
A: Step 1: Definition of Cash Flow AdjustmentsCash flow adjustments refer to the changes made to net…
Q: General accounting
A: Step 1: Definition of Gain or Loss on Sale of AssetWhen an asset is sold, the gain or loss is…
Q: Solve this Accounting MCQ
A: Explanation of Modified Unit Attribution:Modified unit attribution is a refined approach to…
Q: Financial accounting
A: Step 1: Define Interest EarnedInterest Earned: It refers to the additional amount paid by a borrower…
Q: General accounting
A: Step 1: Define Gross ProfitGross Profit is the amount of money a company earns from selling a…
Q: What are the three main audit risks faced by independent auditors? Which party is responsible for…
A: Audit risk is the risk that an auditor may issue an unqualified report due to the auditor's failure…
Q: SUB. Account
A: To calculate the labor efficiency variance, we use the formula:Labor Efficiency Variance=(Standard…
Q: Not need chart gpt solution please given answer general accounting question
A: Step 1: Define Cost-Volume-Profit (CVP) AnalysisCost-Volume-Profit Analysis (CVP) helps in…
Q: what is the arithmetic average annual return per year? accounting question
A:
None
Step by step
Solved in 2 steps
- Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of income will Singh Co. expect?Peterson Manufacturing is evaluating two different operating structures which are described below. The firm has annual interest expense of $250, common shares outstanding of 1,000, and a tax rate of 40 percent. Fixed Cost Price per unit Variable cost per unit Operating Structure 1 $500 $1 $0.75 Operating Structure 2 $1200 $1 $0.70 1. For each operating structure, calculate x. EBIT and EPS at 10,000, 20,000, and 30,000 units. y. the degree of operating leverage (DOL) and degree of total leverage (DTL) using 20,000 units as a base sales level. z. the operating breakeven point in units. 2. Which operating structure has greater operating leverage and business risk? 3. If Peterson projects sales of 20,000 units, which operating structure is recommended?What is horizon industries opereting leverage?
- Sales revenue for XYZ Company is $1,000,000. The cost of goods sold is $450,000 and the operating expenses are $250,000. Interest revenue for the company is $100,000 and the interest expenses are $50,000. The minimum required rate of return is 15% and cost of operating assets $1,500,000. What is the residual income for XYZ Company? a. $125,000 b. $175,000 c. $100,000 d. $75,000What is the operating profit ? General accounting questionIf sales are $314,000, variable costs are 75% of sales, and operating income is $44,100, the operating leverage is Oa. 0.0 Ob. 5.3 Oc. 1.8 Od. 1.3
- Consider the following summary modified income statement for Tech Inc.: Sales $593,000 Variable Operating Costs 252,000 Contribution Margin $341,000 Fixed Operating Costs 121,000 Operating Income $220,000 Interest Expense 26,000 Net Income $194,000 Calculate Tech's degree of operating leverage. A В C E 1 2 Degree of Operating Leverage = 4 5 7 8 9 10 3. 6.Company H wants to calculate degree of operating, financial and combined leverage for the company using 2018 financial data. The financial data are as follows: Sales (80,000 units) S800,000 Variable costs S250,000 $550,000 $150,000 Contribution Fixed costs $400,000 $50,000 Operating income Interest Earnings before taxes $350,000 What is the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of Combined Leverage (DCL)? a. DOL is 1.143; DFL is 1.132 and DCL is 1.571. b. DOL is 1.571; DFL is 1.143 and DCL is 1.143. c. DOL is 1.143; DFL is 1.143 and DCL is 1.137. d. DOL is 1.375; DFL is 1.143 and DCL is 1.571.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
- Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.What is the degree of operating leverage on these accounting question?A company has a minimum cost of capital of 20%. The company reported income of $3,800, sales of $60,000 and an investment base in assets of $25,000. Calculate the residual income. O $1,200 O $ 8,200 O $1,200 O$-8,200 O Other: