12 Bristo Corporation has sales of 1,750 units at $40 per unit. Variable expenses are 30% of the selling price. If total fixed expensesare $39,000, the degree of operating leverage is:O 227O 4.90O210O 7.00No

The question is based on the concept of Cost Accounting. Degree of operating leverage is the…

Answered: Bristo Corporation has sales of 1,750…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Acme Company has sales of 2,375 units at $40 per unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, the degree of operating leverage is: O 1.90 O 9.50 O 2.07 O 7.60
Bristo Corporation has sales of 1,250 units at $60 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $35,000, the degree of operating leverage is: Multiple Choice 7.50 3.17 4.50 3.00
Multiple Choice
ABC Company's variable expenses are 75% of sales. At a sales level of R400 000, the company's degree of operating leverage is 8. At this sales level, fixed expenses equal: A. R87 500. B. R50 000. C. R100 000. D. R75 000.
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Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per ?unit is $6, and fixed expenses are $1,500. How much is the profit $13,500 a O $8,500 .b O $16,000 .c O $11,000 .d O $6,000 .e O
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Bristo Corporation has sales of 1,750 units at $40 per unit. Variable expenses are 30% of the selling price. If total fixed expenses are $39,000, the degree of operating leverage is: O 227 O4.90 O210