Crane Designs has fixed costs of $229,600 and produces one graphic arts product with a selling price of $85 and variable costs of $45 per unit. Crane is currently selling 10,865 units. (a) What is Crane Design's degree of operating leverage (DOL)? (Round answer to 2 decimal places, e.g. 5.25.) Your answer is correct. Degree of operating leverage (DOL) (b) eTextbook and Media (c) Your answer is correct. If sales revenues are expected to increase by 10%, what will be the expected operating profit? Expected operating profit $ eTextbook and Media * Your answer is incorrect. 248,460 Expected net income $ 2.12 Based on the above, what would be Crane's expected net income if its effective tax rate is 30%? 1,017,151 Attempts: unlimited Attempts: unlimited

Crane Designs has fixed costs of $229,600 and produces one graphic arts product with a selling price of $85 and variable costs of $45 per unit. Crane is currently selling 10,865 units. (a) What is Crane Design's degree of operating leverage (DOL)? (Round answer to 2 decimal places, e.g. 5.25.) Your answer is correct. Degree of operating leverage (DOL) (b) eTextbook and Media (c) Your answer is correct. If sales revenues are expected to increase by 10%, what will be the expected operating profit? Expected operating profit $ eTextbook and Media * Your answer is incorrect. 248,460 Expected net income $ 2.12 Based on the above, what would be Crane's expected net income if its effective tax rate is 30%? 1,017,151 Attempts: unlimited Attempts: unlimited

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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