Calculate the degree of operating leverage given the following information; sales of $25,000; variable costs of $13,000; and operating income of $7,000 for year one, and sales of $40,000; variable cost $15,000; and operating income of $16,000 for year 2.
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- Provide this question solution general accountingUsing the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $2,000,000 Variable 1,100,000 costs Contribution 900,000 margin 45% Controllable 300,000 fixed costs Controllable $600,000 margin Average operating $5,000,000 assetsUsing the following data, estimate the new Return on Investment if there is a 11% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,565,862 Contribution margin 48% Controllable fixed costs 293,294 Average operating assets $4,671,197 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
- The following results pertain to an investment center. Sales $ 1,306,000 Variable costs 710,000 Traceable fixed costs 106,000 Average investment 980,000 Divisional cost of capital (discount rate) 12 % How much is the residual income (RI) for this investment center?Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year isas follows:TotalSales $11,700,000Total variable cost 8,190,000Contribution margin $ 3,510,000Total fixed cost 2,254,200Operating income $ 1,255,800Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 morethan expected.4. For the projected level of sales, compute the margin of safety in units, and then in salesdollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.Using the following data, estimate the new Return on Investment if there is a 9% decrease in the average operating assets - with the new average operating assets as the base. Sales $2,217,038 Contribution margin Controllable foxxed costs Average operating assets 34% 283,398 $4,189,521 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
- Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $2,000,000 Variable costs 1,100,000 Contribution margin 45% 900.000 Controllable fıxed costs 300.000 Controllable margin $600,000 Average operating assets $5,000,000 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.Using the following data, estimate the new Return on Investment if there is a 10% increase in sales - with average operating assets as the base. Sales $3,141,602| 37% Contribution margin Controllable fixed costs 242,126 Average operating assets $4,854,981 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.A project has following estimated data: per unit; variable cost = $30 per unit; $100,000%3; Fixed cost = Company has borrowings of $100,000 at a rate of 10%. Calculate the combined leverage of the project when units sold are 10,000 units.
- Using the following data, estimate the new Return on Investment if there is a 10% decrease in variable and fixed costs - with average operating assets as the base. Sales $2,000,000 Variable costs 1.100.000 Contribution margin 900.000 Controllable fıxed costs 300.000 IControllable margin $600,000 Average operating assets $5,000,000 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.Using the following data, estimate the new Return on Investment if there is a 11% decrease in variable and fixed costs- with average operating assets as the base. Sales $2,436,021 Contribution margin 39% Controllable 361,596 fixed costs Average operating $5,885,455 assets Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.Assume the following (1) contribution margin = $150,000 (2) net operating income = $15,000, and (3) sales increase by 6%. Given these three assumptions, net operating income will increase by: Multiple Choice 60%. 1%. 6%. 25%.