Determine Cartersville Co.’s operating leverage.
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Operating Leverage
Cartersville Co. reports the following data:
| Sales | $455,200 |
| Variable costs | (250,400) |
| Contribution margin | $204,800 |
| Fixed costs | (146,300) |
| Operating income | $58,500 |
Determine Cartersville Co.’s operating leverage. Round your answer to one decimal place.
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- Operating Leverage Haywood Co. reports the following data: Sales $6,160,000 Variable costs (4,620,000) Contribution margin $1,540,000 Fixed costs (440,000) Operating income $1,100,000 Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.need this account subjects solutionsBeck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $290,900 $805,500 Variable costs (116,700) (483,300) Contribution margin $174,200 $322,200 Fixed costs (107,200) (143,200) Operating income $67,000 $179,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. 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. $ % Bryant Inc. $ % c. The difference in the of operating income is due to the difference in the operating leverages. Beck Inc.'s operating leverage means that its fixed costs are a percentage of contribution margin than are Bryant Inc.'s.
- The following income statement applies to Finch Company for the current year: Income Statement Sales revenue (480 units × $30) $ 14,400 Variable cost (480 units × $15) (7,200 ) Contribution margin 7,200 Fixed cost (4,000 ) Net income $ 3,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that FinchAsha Inc. and Samir Inc. have the following operating data: Line Item Description Asha Inc. Samir Inc. Sales $216,800 $632,000 Variable costs (87,000) (379,200) Contribution margin $129,800 $252,800 Fixed costs (70,800) (94,800) Operating income $59,000 $158,000 a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place.Asha Inc. fill in the blank 1 of 2Samir Inc. fill in the blank 2 of 2 b. How much would operating income increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Company Dollars Percentage Asha Inc. $fill in the blank 3 fill in the blank 4% Samir Inc. $fill in the blank 5 fill in the blank 6% c. The difference in the fill in the blank 1 of 3 of operating income is due to the difference in the operating leverages. Asha Inc.'s fill in the blank 2 of 3 operating leverage means that its fixed costs are a fill in the blank 3 of 3…Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable costs 750,000 1,250,000 Contribution margin $500,000 $750,000 Fixed costs 400,000 450,000 Income from operations $100,000 $300,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number.
- genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.What is operating leverage for the info attached? 1.3, 2.7 or 6.7Beck 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 %
- What is the operating leverage for this general accounting question?The following information was drawn from the records of Calico Company Sales Revenue (300 @ $650 per unit) Cost of Goods Sold: Variable (300 @ $350 per unit) Fixed Gross Margin Sales Commissions (300 @ $30) Depreciation Net Income Multiple Choice Based on this information the magnitude of operating leverage is approximately: Note: Round you answer to 2 decimal places. O O O O 1.17. 1.11. Income Statement 1.24. 0.89. $ 195,000 (105,000) (10,500) 79,500 (9,000) (1,500) $ 69,000Hide or show questions Progress:5/19 items Tom Company reports the following data: Sales $291,346 Variable costs 151,946 Fixed costs 57,400 Determine Tom Company's operating leverage. Round your answer to one decimal place.fill in the blank 1
