Answered: Carroll and Company sells a single…

Carroll and Company sells a single product. Its annual revenue is 1200000 dollars and profit is 50000 dollars. Fixed costs amount to 250000 dollars. What is its operating leverage?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...

See similar textbooks

Related questions

Q: hello teacher please solve questions general accounting

A: Step 1: Definition of Accumulated DepreciationAccumulated depreciation represents the total…

Q: hello teacher please solve questions

A: Step 1: Analysis of information givenOriginal cost of machine = $30,000Useful life = 10 yearsSalvage…

Q: Financial accounting

A: Step 1: Definition of Return on Assets (ROA)Return on assets (ROA) is a financial ratio that…

Q: Financial accounting rom spring net income last was 275.60 million

A: Step 1: Formulas Price-earnings ratio = Share price/Earnings per shareEarnings per share = Net…

Q: If the required adjusting entry for prepaid rent that has expired for the period is omitted:

A: Prepaid rent is recorded as an asset when initially paid. Over time, as the rental period elapses,…

Q: Provide Financial Accounting

A: Step 1: Calculate Equivalent Units of Production (Conversion):Units completed and transferred out:…

Q: Need help this question

Q: Please provide correct solution and accounting

A: Step 1: Define FOB DestinationUnder the free on board destination, which is a shipping term, the…

Q: None

A: To calculate the Debt to Equity Ratio, use the formula: Debt to Equity Ratio = Total Debt / Total…

Q: I want to correct answer general accounting question

A: Step 1:First, calculate the interest cost: Interest cost = PBO, beginning * Discount rate…

Q: general accounting

A: Step 1: Definition of Variable Cost per UnitVariable costs are costs that change in direct…

Q: If beginning and ending work in process inventories are $9,100 and $18,100, respectively, and cost…

A: Hello student! The Total Manufacturing Costs incurred during the period includes the…

Q: answer plz

A: Given valuesFixed costs are the following:Marketing and admin = $200,000 per periodManufacturing…

Q: Answer

A: Given: - **Average daily demand** = 65 units - **Lead time** = 8 days R = 65 \times 8 = 520…

Q: What is the maturity value of the note on mar. 1 ?

A: 1. Calculate the InterestInterest = Principal x Rate x TimeInterest = $9,000 x 10% x (120 days / 360…

Q: provide correct answer

A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) measures a company's…

Q: None

A: Step 1: Definition of Owner's EquityOwner's equity represents the owner's residual interest in a…

Q: Starma Inc

A: Given:Total estimated overhead cost for order size = $175,140Total machine hours = 15,400…

Q: Need Answer

A: Solution: Direct Labor Rate Variance CalculationGiven Data:Actual labor cost per hour = $32Standard…

Q: Provide answer me accounting

A: Step 1: Identify EBIT(1-T) (Net Operating Profit After Taxes)Step 2: Identify Net Capital…

Q: provide correct answer me

A: Dividend YieldDividend Yield=(Annual Common Stock/ DividendMarket Price per…

Q: No Wrong Answer

A: Step 1: Manufacturing Expenditures are the expenditures which are incurred in manufacturing a…

Q: Answer this Accounting question

A: Explanation of Markup: Markup is the difference between the selling price of a product and its cost,…

Q: Provide Right Answer

A: Cost of Equity Using DDM Current Share Price = (D0*(1+Growth Rate))/(Cost of Equity-Growth Rate)64 =…

Q: Calculate to each opereting department

A: Step 1: Definition of Administrative CostsAdministrative costs are expenses incurred to manage and…

Q: The journal entry to record the borrowing of cash and the signing of a note payable involves:

A: When a company borrows cash and signs a note payable, it records the transaction as follows: Debit…

Q: What is total gross income for the year?

A: Explanation of Gross Sales: Gross sales represents the total revenue generated from all sales…

Q: None

A: To calculate the ending retained earnings on December 31, 2014, we use the following formula: Ending…

Q: hi expert please help me

A: Let's solve the problem step by step using the High-Low Method. Step 1: Identify the High and Low…

Q: What is the gross income for the year?

A: Explanation of Gross Income:Gross Income is the total earnings a business receives before deducting…

Q: Accurate answer

A: Approach to solving the question:Freeform Detailed explanation: To determine the equivalent units of…

Q: At the beginning of the recent period there were 1,080 units of product in a department, one-third…

A: Concept of Equivalent UnitsEquivalent units refer to the measure used in process costing to express…

Q: Given the following information how much raw material was transferred to work in progress on January…

A: Step 1: Formula Raw materials costs will be transferred to work in process account once put in the…

Q: None

A: Given:Debt Ratio = 0.20 (which means 20% of the company's assets are financed by…

Q: Need correct answer general Accounting

A: Step 1: Define Future Price with InflationThe future price of a product or service can be estimated…

Q: Hassock Corp

A: Concept of Standard Labor HoursStandard labor hours represent the predetermined amount of time a…

Q: need help this questions

A: Step 1: Identify the Present Value of Annuity FormulaPV =C × PV A Where:PV = Present Value (initial…

Q: expert of general accounting answer

A: Step 1: Definition of Capital GainA capital gain occurs when a company sells an asset for more than…

Q: What is the direct labor A,B,C ?

A: Step 1: Define Labor VarianceA labor variance measures the effectiveness of a company in using labor…

Q: Hi expert please help me this question

A: Step 1: Definition of Gross ProfitGross profit is the amount a company earns from its sales after…

Q: hi expert please help me

A: Given Data:Cash = $36,000Supplies = $1,500Stockholder's Equity = $28,000Step 1: Compute Total…

Q: provide correct answer me

A: Step 1: Definition of Accounting EquationThe accounting equation serves as a basis for the balance…

Q: None

A: Step 1: Definition of Accounts Receivable Turnover Ratio and Days' Sales Outstanding (DSO)Accounts…

Q: Hello teacher please help me this question solution

A: Step 1: Definition of Lease LiabilityLease liability represents the present value of future lease…

Q: ?!

A: Step 1: Direct materials used Direct materials used = Prime costs - Direct labor costsDirect…

Q: How much must thomas include in his gross income?

A: Explanation of Gross Income:Gross Income refers to the total amount of money, goods, or services…

Q: Calculate the gross profit and cost of goods sold

A: Step 1: Definition of Gross Profit and Cost of Goods Sold (COGS)Gross Profit is the difference…

Q: Please give me true answer this financial accounting question

A: Step 1: Define Cost of EquityCost of equity represents the return that investors require for…

Q: choose best answer

A: Step 1: Definition of Operating LeverageThe degree of operating leverage (DOL) measures how…

Q: Accounting 12

A: Concept of RevenueRevenue is the total amount of money a business earns from its operations before…

Question

100%

Provide correct solution and accounting question

Carroll and Company sells a single product. Its annual
revenue is 1200000 dollars and profit is 50000 dollars.
Fixed costs amount to 250000 dollars. What is its operating
leverage?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Snower Corporation sells product G for $150 per unit, the variable cost per unit is $105, and the fixed costs are $720,000. What is the sales (in dollars) required to realize operating income of $40,000?
Kingston Enterprises sells a single product. Its annual revenue is $1,400,000, and profit is $75,000. Fixed costs amount to $320,000. What is its operating leverage?
A company sells its product at P18 per unit. Variable costs are P12 per unit and fixed costs are 150,000 per annum. The company wants to realize a profit of P60,000 during the year. What should be the sales revenue?
Give me answer please
Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 perunit. The company’s monthly fixed expense is $50,000.Required:1. Using the equation method, solve for the unit sales that are required to earn a target profit of$10,000.2. Using the formula method, solve for the unit sales that are required to earn a target profit of$15,000.
The fixed cost at Harley motors are $1M annually. The main product has a revenue of $9.90 per unit and $4.50 variable cost What is the annual profit (or loss) if 150,000 units are sold?
KN Enterprises produces a single part for sale. The part sells for $19 per unit. Fixed costs are $1,420,000 annually. Production and sales of 640,000 units annually result in profit before taxes of $2,350,000. What is the unit variable cost? Provide answer
Jasmine Inc. makes a single product that it sells for $25 each. Variable costs are $13 per unit and annual fixed costs total $30,000 per year. The company would like to realize operating income next year of $60,000. What level of sales in dollars must the company achieve to reach its target profit?
Product X sells for $50 with variable costs of $36 per unit and annual fixed costs of $1,200,000. If the company wants to earn an operating income equal to 20% of sales, how many units must be sold, assuming all units produced are sold?
What is the unit variable cost of the general accounting question?
A product sells for $50 with variable costs of $36 per unit and annual fixed costs of $1,200,000. If the company wants to earn an operating income equal to 20% of sales, how many units must be sold (Assume all units produced are sold)?
Gimpy Corp. has variable costs that are 75% of sales, current sales of $800,000, and fixed costs of $150,000. What is the required sales amount to achieve a $85,000 net income? Answer