Co. forecasted the following data for 2022 ·      Projected unit sales is 5,000 at a selling price of P65. ·      Variable cost ratio is 60% ·      Operating break-even point in sales is P250,000 ·      Earnings before taxes and interest is P30,000 ·      The P100,000 total debt of the firm requires annual payment of interest at 5%. What is the degree of combined

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A: Degree of operating leverage (DOL): DOL reflects  variable and fixed cost relationship of an…

Q: An A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million,…

A: 1) Computation of DOL, DFL, DCL is as follows:DOL=Sales -Variable costSales -variable cost-fixed…

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A: Degree of Total leverage (DTL)= DOL x DFLWhereDOL = Degree of operating leverage = 1.25DFL = Degree…

Q: XYZ company expects in the coming year: sales of 40,000 units at $10 per unit, variable operating…

A: given information sales = 40000 units at $10 per unit variable operating cost = 4 per unit fixed…

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A: Given: Particulars Amount Sales units 20000 Selling price 25 Contribution margin ratio 40%…

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A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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Q: If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5,…

A: Net Income is defined as the total amount of the funds, which is earned by the business in the…

Q: Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC…

A: EBIT: EBIT stands for Earnings before interest and tax. EBIT is calculated after adding the interest…

Q: Your business plan for your proposed start-up firm envisions first-year revenues of $120,000, fixed…

A: Given information in this question, Revenue                      =          $120,000  Variable cost…

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A: The degree of combined leverage is calculated as ratio of contribution and income after interest…

Q: An A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million,…

A: formula for DOL, DFL and DCL DOL=contibutionEBIT=sales - variable costsales - variable cost - fixed…

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A: This problem relates to leverage analysis. Degree of Operating Leverage measures the percentage…

Q: Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC…

A: EBIT stands for Earning before interest and tax refer to the earnings after deducting all the…

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A: Excel Spreadsheet: Excel Workings:

Q: XYZ company expects in the coming year: sales of 40,000 units at $10 per unit, variable…

A: Solution: 1) Degree of Total Leverage: = (Sales - Variable Costs) ( Sales - Variable Costs - Fixed…

Q: XYZ company expects in the coming year: sales of 40000 units at $10 per unit, variable operating…

A: 1 The formula to calculate the operating leverage is: Degree of operating Leverage (DOL)= (Sales -…

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A: Given Net profit of the firm = OMR 280000 Capital Employed = OMR 1400000 Return on capital employed…

Q: Data are as follows: In year 2020, sales are 150,000 units with Selling price per unit of 10 and VC…

A: The contribution margin is calculated as difference between sales and variable costs.  The operating…

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A: Return on Owner's Investment = Net Income / Owner's equity Owner's equity in case 1 =$200,000…