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 fixedexpenses are $85,000, what is the degree of operatingleverage (DOL)?a. 2.50b. 3.00C. 5.25d. 1.85

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

Answered: Harper Industries has sales of 3,000…

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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If a company’s variable costs are 70% of sales, which formula represents the computation of peso sales that will yield a profit equal to 10% of the amount of sales when P equals sales in pesos for the period and FC equals total fixed costs for the period? a. P = .2/FC b. P = FC/.2 c. P = .27/FC d. P = FC/.27
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
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?
Solution method please.
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?
The company’s current selling price and variable cost per unit is P60 and 36 respectively. If the selling price is reduced by 5%, variable expenses reduced by P1.00, and fixed expenses increased to a total of P38,400, how many units would need to be sold to earn a net operating income of P21,000? 1,000 2,700 1,700 2,950
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?

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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