Harper Industries has sales of 3,000 units at $50 per unit. Variable expenses are 30% of the selling price. If the total fixed expenses are $85,000, what is the degree of operating leverage (DOL)? a. 2.50 b. 3.00 C. 5.25 d. 1.85

Harper Industries has sales of 3,000 units at $50 per unit. Variable expenses are 30% of the selling price. If the total fixed expenses are $85,000, what is the degree of operating leverage (DOL)? a. 2.50 b. 3.00 C. 5.25 d. 1.85

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: General Accounting 3.25.74 If sales are $420,000, variable costs are 72% of sales, and operating…

A: Explanation of Operating Leverage:Operating leverage measures how a change in a company's sales…

Q: Wilson Company has a predetermined overhead rate of $5 per direct labor hour. The job-order cost…

A: Detailed explanation:Total Cost for Job 145 :…

Q: Direct Labor Cost?

A: Explanation of Cost of Goods Manufactured (COGM): This represents the total manufacturing cost of…

Q: No WRONG ANSWER

A: Concept of Discontinued Operation:A discontinued operation refers to a component of a company that…

Q: Factory rent is categorized as: a. Product and direct material costs. b. Product and direct labor…

A: Option a: This option is incorrect because the factory rent is product cost but not direct material…

Q: Provide correct answer general Accounting question? ?

A: Step 1: Define Residual Distribution ModelThe residual distribution model is a dividend policy…

Q: Given answer accounting question

A: To calculate the approximate real rate of return, we need to adjust the nominal return for…

Q: Accounting solve this question

Q: this is general account questions

A: To calculate the net income or net loss, we use the accounting equation: Net Income (or Net…

Q: General accounting question please solve

A: Step 1: Definition of Full Costing (Absorption Costing)Full costing, also known as absorption…

Q: The company would report on its 2024 income statement

A: To determine the "Salary Expense" the company would report on its 2024 Income Statement, we can use…

Q: i wont to this question answer general accounting

A: Step 1: Define Contra-Asset AccountA contra-asset account is a type of accounting account with a…

Q: Problem

A: Explanation of Sales: Sales represents the total revenue generated from selling products or services…

Q: What is the total sales volume variance and contribution margin?

A: Step 1: Define Sales Volume VarianceDifferences between the budgeted and actual quantity affecting…

Q: General accounting

A: Question 1: Contribution Margin Ratio• Step 1: Calculate the Total Contribution Margin• Step 2:…

Q: Question No. 14. (Financial Accounting): Suppose you sell a fixed asset for $153,000 when it's book…

A: Explanation of Fixed Asset: A fixed asset is a long-term tangible piece of property or equipment…

Q: Please solve this question general accounting

A: Step 1:a. The total factory overhead applied is calculated as follows: Factory overhead applied =…

Q: I want to correct answer accounting questions

A: Step 1: Definition of Current Ratio and Quick RatioCurrent Ratio: Measures a company's ability to…

Q: General Accounting can you please answer?

A: Step 1: Define Variable CostingVariable Costing includes only the variable manufacturing costs in…

Q: Quick answer of this accounting questions

A: Step 1: Definition of APR (Annual Percentage Rate)The APR is the nominal annual interest rate that…

Q: Subject:- General Account

A: The correct answer is:b. Indirect costs Explanation:Annual Machine Maintenance is a cost incurred…

Q: The cost of goods sold of rick company for the period is?

A: Given:Beginning inventory = $56,500Cost of purchase = $263,000Closing inventory = $68,000 Formula…

Q: Platz Company makes chairs and planned to sell 4,100 chairs in its master budget for the coming…

A: Step 1:The volume variance for sales revenue is calculated as follows: Volume variance = (Actual…

Q: On January 1, 2012, Sterling Enterprises purchased.... Please answer the general accounting question

A: Step 1: Define Gain or Loss on Sale of AssetThe gain or loss on the sale of an asset is the…

Q: What is panther corporation's stockholder's equity at the end of the year on these general…

A: Step 1: Define Stockholders' EquityStockholders' Equity represents the owners' claim on the…

Q: None

A: The problem requires the determination of the percentage increase of profits. Profit describes the…

Q: The balance sheets of Davidson Corporation reported net fixed assets of $830,000 at the end of Year…

A: Approach to solving the question: For better clarity of the solution, I have provided both the…

Q: Expert need your help

A: Explanation of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured refers to the total…

Q: help me with this

A: Detailed explanation:Total Sales: Cash Sales$ 52,000 Credit Sales 78,000 Total Sales $…

Q: Need answer

A: The question requires the determination of the yearly earnings on a savings account. This is also…

Q: None

A: Calculate Total Sales Revenue:Total Sales Revenue = Selling Price per Unit * Units SoldTotal Sales…

Q: Determine cash withdrawals for the period if net income is $53,000, beginning owner's equity is…

A: Explanation of Net Income: Net income, shown as $53,000 in this case, represents the total profit…

Q: FINANCIAL ACCOUNT

A: Problem Information:Corsi Company has no beginning Work in Process inventory, so all units started…

Q: What is the opereting cash flow at this level of output?

A: The operating cash flow at the break-even point can be calculated using the formula: Operating Cash…

Q: Hi expert please solve this question general accounting

A: Step 1: In the gross profit method, Ending inventory is estimated by subtracting the Cost of goods…

Q: Don't use ai given answer accounting questions

A: Hope this helps

Q: Can you answer this general accounting question without use any ai ?

A: Here's how we can calculate it:Components of Pension Expense:Service Cost: This is the cost of…

Q: What is the contribution margin ratio on these general accounting question?

A: First, let's identify the key information:Sales = $920,000Variable costs = 63% of sales = 0.63 ×…

Q: What is Highfield profit margin?

A: To calculate Highfield Corporation's profit margin, we need to determine the net income and divide…

Q: Hi teacher please help me this question

A: Step 1: Define Activity-Based Costing (ABC) MethodThe activity-based costing method is used to…

Q: Financial accounting

A: Step 1: Calculate the nominal rate of returnDividend yield = $1.60 (dividend) / $60 (initial price)…

Q: Don't use ai given answer accounting questions

A: To calculate the Effective Annual Rate (EAR) for a discounted loan with a compensating balance, we…

Q: General Accounting

A: Step 1: Define Return on Assets (ROA)Return on Assets (ROA) is a financial ratio that measures a…

Q: Please given correct answer general accounting

A: Step 1: Definition of Contribution MarginContribution margin is the amount remaining from sales…

Q: # Financial Account

A: The correct answer is:C. FIFO. Explanation:Impact of Rising Prices:In a period of steadily rising…

Q: Can you please give me correct answer the general accounting question?

A: First, let's identify the revenue sources for that day:Regular sales: 90 burgers × $18 =…

Q: Answer?

A: Concept of Contribution Margin:Contribution margin is the amount remaining from sales revenue after…

Q: Sub: Accounting 09

A: Step 1:Calculate the earnings before tax as follows:EBT = Sales - Total cost - Depreciation -…

Q: Financial Accounting

A: Step 1: Define Total DebtA company's total debt represents the amount it owes to the creditors,…

Q: Answer? ? Financial accounting question

A: Step 1: Analysis of information givenRate of preferred dividend = 11%Par value = $75Selling price of…

Question

100%

General accounting

Harper Industries has sales of 3,000 units at $50 per unit.
Variable expenses are 30% of the selling price. If the total fixed
expenses are $85,000, what is the degree of operating
leverage (DOL)?
a. 2.50
b. 3.00
C. 5.25
d. 1.85

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A company desires a net income of $950,000 when it has $2,800,000 of fixed costs and variable costs of 65% of sales. What are the required sales? a. $3,500,624.27 b. $8,200,570.89 c. $10,714,285.71 d. $12,000,057.54 MCQ
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?
A product is sold at $80 per unit, the variable expense per unit is $20, and total fixed expenses are $600,000, what are the breakeven sales in dollars? (Do not round intermediary calculations and round your final calculation to the nearest dollar.) OA. $450,000 OB. $472,500 OC. $22,500 OD. $800,000
Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? Oa. $228,200 increase Ob. $152,600 increase Oc. $152,600 decrease Od. $75,600 increase
Skyline Enterprises' CVP income statement includes sales of 5,500 units, a selling price of $120 per unit, variable expenses of $75 per unit, and fixed expenses of $140,000. What is the net income? a. $82,500 b. $125,000 c. $107,500 d. $75,000
What percent are variable costs of sales?
Spice Inc.'s unit selling price is $54, the unit variable costs are $40, fixed costs are $117,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,800 units? Oa. $81,200 increase Ob. $152,600 increase Oc. $233,800 increase Od. $152,600 decrease
The selling price of a product is $75.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $300,000, what are total fixed expenses? $80,000 $4,000 $300,000 $20
The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?
Anderson Company's break-even point in units is 2,150. The sales price per unit is $10 and the variable cost per unit is $5. If the company sells 5,200 units, what will its net income be? a. $25,500 b. $15,250 c. $11,700 d. $19,750 e. $26,000
What will its net income be?
Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit for its products. Let us further consider that selling price is birr 2.7 per unit. Required: A. Write the revenue and the cost equation of the company B. At what level of production output is the company Break-even? C. What is the amount of the revenue when the company produces 300,000 units? D. If the company plans to earn a profit of 7000, what amount of quantity has to be produced?