I need help with this general accounting problem using proper accounting guidelines. Drake Tools Inc. has sales of 2,000 units at $80 per unit.Variable expenses are 45% of the selling price. Fixedcosts are $40,000. What is the degree of operatingleverage (DOL)?

Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL)…

Answered: Drake Tools Inc. has sales of 2,000…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

See similar textbooks

Similar questions

What is the price per unit of the financial accounting?
The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $243,000, what are the total fixed expenses?
What are the required sales? accounting
What is the degree of operating leverage on these accounting question?
What will net income be
Can you help me solve this general accounting question using the correct accounting procedures?
P Company has provided the following data: Sales Price per unit: $50. Variable Cost per unit: $30; Fixed Cost: $135,000 Expected Sales: 20,000 units. d. Determine the margin of safety in dollars. e. If the company wants to have net income of $70,000, how many units must they sell.
Spice Inc.'s unit selling price is $49, unit variable costs are $39, fixed costs are $120,000, and current sales are 9,100 units. How much will income from operations change if sales increase by 5,400 units? DO NOT GIVE SOLUTION IN IMAGE FORMAT
In March, James Electronics had sales of $2,550,000 (25,500 units), total variable expenses of $1,275,000, and total fixed expenses of $825,000. Required: 1. What is the company's CM ratio? CM ratio % A 2. Using the CM ratio, calculate the break-even level of sales in dollars. Break-even level of sales in dollor 3. What is the break-even level of sales in units? Break-even level of sales in units units
Angel Corporation produce calculators selling for $25.99. Its unit cost is $18.95 Assuming a fixed cost of $80,960, what is the breakeven point in units?
What is the degree of operating leverage for this accounting question?
answer ? : General accounting

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Drake Tools Inc. has sales of 2,000 units at $80 per unit. Variable expenses are 45% of the selling price. Fixed costs are $40,000. What is the degree of operating leverage (DOL)?