Given the following information, compute the degree of operating leverage (DOL): Year 1: Year 2: • Sales: $80,000 Variable Costs: $40,000 Operating Income: $25,000 Sales: $100,000 Variable Costs: $45,000 Operating Income: $40,000
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- If sales are $309,000, variable costs are 75% of sales, and operating income is $36,000, the operating leverage is Oa. 64 Оb. 1.6 Oc. 2.1 Od. 0.0If sales are $314,000, variable costs are 75% of sales, and operating income is $44,100, the operating leverage is Oa. 0.0 Ob. 5.3 Oc. 1.8 Od. 1.3Operating leverage Haywood Co. reports the following data: Line Item Description Amount 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.
- What is operating leverage for the info attached? 1.3, 2.7 or 6.7Determine the operating leverageOperating 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.
- 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.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.Operating Leverage Cartersville Co. reports the following data: Sales $485,800 Variable costs 291,500 Contribution margin $194,300 Fixed costs 156,200 Income from operations $38,100 Determine Cartersville Company's operating leverage. Round your answer to one decimal place.
- provide correct answerAre operating leverage Beck Inc. and Bryant Inc. have the following operating data back Inc. sales $180,400 variable cost $72,400 contribution margin equals $108,000 fixed cost $54,000 income from operations $54,000 compute the operating leverage for Beck Inc. question VE how much would income from operations increase if the sales were increased by 15%? Bryant Inc. data is sales equals $432,000 variable cost $259,200 contribution margin $172,800 fixed cost $28,800 Income from operations $144,000 compute the operating leverage for Bryant company question B. How much would income from the operations increase for the Bryant company if the sales were increased by 15%?Variable cost:438000, fixed cost:160000