Company A is a manufacturer with current sales of $3,300,000 and a 60% contribution margin. Its fixed costs equal $1,450,000. Company B is a consulting firm with current service revenues of $3,200,000 and a 30% contribution margin. Its fixed costs equal $460,000. Compute the degree of operating leverage (DOL) for each company.
Q: I need answer of this question general finance
A: Step 1: Define Statement of Cash FlowsA cash flow statement is an important aspect of a company's…
Q: Horse Corporation acquires all of Pony, Inc. Please solve these accounting problem
A: Step 1: Define GoodwillGoodwill is a type of intangible asset that is associated with a company…
Q: General accounting Question 4 points
A: contribution is the difference between the sales price and variable costs for a specific product or…
Q: Tutor provide answer for this
A: Definitions Related to the QuestionData Breach:A data breach occurs when unauthorized parties access…
Q: ANSWER
A: Question 1Inventory Turnover Ratio:The inventory turnover ratio measures how efficiently a company…
Q: A corporation issues 9%, 10-year bonds with a par value of $570,000 and semiannual interest…
A: Step 1:First calculate the issue price of the bond: Issue price = Par value * Selling price /$100…
Q: Get correct answer general finance...
A: 1) First, let's identify what we need: * Each product unit requires 2 pounds of raw material *…
Q: Please give me answer general accounting
A: Step 1: Define Overhead ApplicationIn the domain of accounting, the direct costs are the costs which…
Q: Q-26 answer me
A: Explanation of Cost of Goods Available for Sale:Cost of goods available for sale refers to the total…
Q: Please help
A: Step 1: Determine the beginning, purchase, and ending office supplies.Beginning - $12,000Purchases -…
Q: On February 6, Blossom Home sold $98,500 of merchandise to A1 Interiors Company, terms 2/10, net/30.…
A: Step 1: February 6: Sale of merchandise to A1 Interiors CompanyDetails:Merchandise sold:…
Q: None
A: Approach to solving the question: Analysis Detailed explanation:Accounts Receivable and Allowance…
Q: Provide this question solution general accounting
A: Step 1: Define Job Order Cost SystemA job-order cost system is a cost accounting system that is…
Q: Please give me answer Accounting
A: Step 1: Define Return On AssetsReturn on assets is a financial indicator of how much income the…
Q: Sb financial accounting
A: Step 1:1. The material price variance is calculated as follows: Material price variance = (Actual…
Q: Please need help with this general accounting question
A: Step 1: Define Share repurchaseThe repurchase of share is an act of buying own shares by the company…
Q: Stockholder Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated…
A: 1. Earnings Per Share (EPS): - Formula: (Net Income - Preferred Dividends) / Average Common Shares…
Q: Welborn Stores offers a coupon on its website for $5 off the customer’s next purchase of $30 or…
A: First, we need to calculate the net amount the customer needs to pay after applying the $5 coupon.…
Q: Hello Tutor! Thank you for answer
A: Explanation of Prudence Convention:The prudence convention is an accounting concept that emphasizes…
Q: Sophie chan owns...accounting question please solve
A: Step 1: Define SharesThe capital of the company is divided into smaller units, which are known as…
Q: Assume that on September 1, Office Depot had an inventory that included a variety of calculators.…
A: Step 1: Introduction to inventory valuationInventory valuation is referred to as that method which…
Q: Under the NBA deferred compensation plan, payments made at the end of each year accumulate up to…
A: To calculate the accumulated amount in Hardaway's deferred compensation account, we need to use the…
Q: Financial Accounting
A: The problem requires the determination of the geometric average return or geometric return. The…
Q: Solve the below Question
A: Explanation of Cost Data: Cost data represents the actual amount spent to acquire or manufacture…
Q: Please need help answer this accounting question
A: Step 1: Define Direct MaterialDirect material cost refers to the raw material expenses which have…
Q: None
A: Requirement 1: To get the estimated sales per quarter, simply multiply the selling price and the…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: Step Method of AllocationThe step method is a cost allocation technique used to assign service…
Q: Accounting Question 5-16
A: Explanation of Fixed Costs:Fixed costs are the expenses that do not change with the level of…
Q: ! Required information [The following information applies to the questions displayed below.] Tony…
A: Journal Entries for TransactionsNovember 5: Issue 128,000 shares of common stock at $10 per…
Q: DL variances; journal entries Calista & Lane, CPAs, set the following standard for its inventory…
A: a. Compute the total actual payroll.Given:The firm actually worked 330 hours.The average hourly rate…
Q: General Finance
A: Total Return = ((Closing Price-Beginning Price)+Dividend)/Beginning Price Total Return =…
Q: Provide correct answer the accounting question
A: Step 1: Define Profit MarginThe amount of profit generated from each dollar of sales is calculated…
Q: Paige...accounting question
A: Step 1: Define Plant ExpansionPlant expansion involves acquiring equipment and machinery by a…
Q: Indicate whether the current ratio, inventory turnover ratio, and debt to total assets ratio would…
A: We need to determine whether the current ratio, inventory turnover ratio, and debt to total assets…
Q: (20) Which category of overhead includes costs such as inspections, machine setups, and movement of…
A: Approach to solving the question:FreeformDetailed explanation: 20. Batch-level activities in…
Q: Do fast and step by step calculation with explanation for this accounting question
A: Step-by-Step Calculation of Realized Gain:1. Identify the key figures from the question: - Fair…
Q: Accounting question please solve
A: Step 1: Definition of Asset DisposalAsset disposal involves replacing a fixed asset when it is no…
Q: Financial accounting
A: Step 1: Define Collection CycleCollection cycle, otherwise known as the days sales outstanding,…
Q: Discuss the accounting treatment
A: Explanation of Deferred Tax Asset (DTA):A deferred tax asset (DTA) is a financial asset that…
Q: Need answer the accounting question
A: Step 1: Define DuPont AnalysisAs per the DuPont analysis, the return on equity is impacted by the…
Q: On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of…
A: Required B: Worksheet Adjustments (Journal Entries)DateAccountDebit ($)Credit…
Q: Solve these general accounting question not use ai and answer do fast
A: Step 1: Define Cost of Goods SoldThe cost of the goods is a crucial metric for efficient retailing.…
Q: Give me right answer
A: Option a: This option is incorrect because a change in the accounting estimate does not require…
Q: Accounting question
A: Step 1: Define Retained EarningsThe retained earnings balance represents the undistributed portion…
Q: Need help with this general accounting question not use chatgpt
A: Step 1: Define Equivalent UnitsIn the context of accounting, process costing techniques such as the…
Q: Please corporation sold a machine accounting
A: Step 1:- Define MachineA machine is a system that uses power to act. The machine is used to perform…
Q: I need answer of this question general finance
A: Step 1: Define BetaThe beta value is used to quantify the volatility or systematic risk of stocks or…
Q: MCQ TYPE QUESTION
A: Explanation of Right-of-Use (ROU) AssetA Right-of-Use (ROU) asset represents the lessee's right to…
Q: Round your answer to nearest $.
A: Explanation: In the given case, we are required to calculate the present value of the lease using…
Q: Hugh snore bedding...Accounting
A: Step 1: Define Net Profit MarginThe net profit margin is the ratio of the net profit relative to the…
Provide this question solution general accounting
Step by step
Solved in 2 steps
- Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company Bs fixed costs are $375,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why.Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contributionmargin. Company B’s fixed costs are $375,000. Compute the degree of operating leverage for both companies.Which company will benefit most from a 15% increase in sales? Explain why.Company A has current sales of $11,797,718 and a 36% contribution margin. Its fixed costs are $2,911,015. Company B is a service firm with current service revenue of $6,207,099 and a 15% contribution margin. Company B’s fixed costs are $604,274. Compute the degree of operating leverage for Company B. Round to the hundredth, two decimals.
- Company A has current sales of $11,132,680 and a 32% contribution margin. Its fixed costs are $2,280,726. Company B is a service firm with current service revenue of $6,286,402 and a 24% contribution margin. Company B’s fixed costs are $686,218. Compute the degree of operating leverage for Company A. Round to the hundredth, two decimals.Company A has current sales of $10, 337, 376 and a 48% contribution margin. Its fixed costs are $2,242,728. Company B is a service firm with a current service revenue of $6,907, 643 and a 18% contribution margin. Company B's fixed costs are $620, 046. Using the degree of operating leverage for Company A, what will be the increase to net income if there was a 21% increase in sales? Round to the hundredth, two decimals.Company A is a manufacturer with sales of $6,000,000 and a 60% contribution margin. Its fixed costs equal $2,600,000. Company B is a consulting firm with service revenues of $4,500,000 and a 25% contribution margin. Its fixed costs equal $375,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales?
- Compare the following two companies: Company A is a retail merchandise firm with current sales of $4,000,000 and a 45% contribution margin. Company A's fixed costs are $600,000. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. Company B’s fixed costs are $375,000. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss 1. Based on the information given, prepare a complete contribution margin income statement for Company A: Company AContribution Margin Income StatementProjected 2. Based on the information given, prepare a complete contribution margin income statement for Company B: Company BContribution Margin Income StatementProjected 3.Compute the degree of operating leverage for…Porter Corporation has fixed costs of $500,000, variable costs of $32 per unit and a contribution margin ratio of 20% a. Compute the unit sales price and unit contribution margin. b. Compute the sales volume in units required for Porter Corp to earn and operating income of $900,000 c. Compute the dollar sales volume required for Porter Corp to earn an operating income of $900,000.A company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $600,000. Compute the following: 1. Contribution margin ratio. 2. Break-even sales volume. 3. Margin of safety ratio. 4. Net operating income percentage.
- Denver Enterprises has fixed costs of $3,150,000. It has a unit selling price of $15.50, unit variable cost of $6.80, and a target net income of $850,000. Compute the required sales in units to achieve its target net income. AnswerBeck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $346,400 $1,059,500 Variable costs (139,000) (635,700) Contribution margin $207,400 $423,800 Fixed costs (146,400) (260,800) Operating income $61,000 $163,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. fill in the blank 1 Bryant Inc. fill in the blank 2 b. How much would operating income increase for each company if the sales of each increased by 10%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $fill in the blank 3 fill in the blank 4 % Bryant Inc. $fill in the blank 5 fill in the blank 6 %Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of income will Singh Co. expect?