Need thus answer general Accounting question Below is the July contribution format income statement for Valley Tech Corporation. Calculatethe degree of operating leverage.ComponentsSalesAmount ($)750,000Less: Variable expenses 420,000Contribution margin330,000Less: Fixed expenses245,000Net operating income 85,000Required:Calculate the degree of operating leverage using the contribution margin format.

Step 1: Define Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) measures the…

Answered: Below is the July contribution format…

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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The degree of operating leverage is?
The July contribution format income statement of Doxtater Corporation appears below: Sales $ 564,400 Variable expenses 312,800 Contribution margin 251,600 Fixed expenses 193,800 Net operating income $ 57,800 The degree of operating leverage is closest to: Multiple Choice 0.23 4.35 0.10 9.76
What is the degree of operating leverage on these financial accounting question?
The degree of operating leverage is closest to:
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The following CVP income statements are available for Wildhorse Corp. and Blossom, Inc. Wildhorse Corp. Blossom, Inc. Sales revenue $854,000 $854,000 * Variable costs 396,500 228,750 Contribution margin 457,500 625,250 Fixed costs 305,000 472,750 Net income $152,500 $152,500 (a) Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) Degree of Operating Leverage Wildhorse Blossom
The February contribution format income statement of Mcabier Corporation appears below: Sales $ 211,200 Variable expenses 96,000 Contribution margin 115,200 Fixed expenses 84,100 Net operating income $ 31,100 The degree of operating leverage is closest to: a/ 0.27 b/ 6.79 c/ 3.70 d/ 0.15
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The following income statement applies to Munoz Company for the current year: Income Statement Sales revenue (440 units x $34) Variable cost (440 units x $19) Contribution margin Fixed cost 3 Net income $14,960 (8,360) 6,600 (4,400) $2,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Munoz Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements. Complete this question by entering your answers in the tabs below. Req A and B Req C1 Req C2 a. Use the contribution margin approach to calculate the magnitude of operating leverage. b.…
The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:

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