Need answer with correct calculation If sales are $300,000, variable costsare 60% of sales, and operatingincome is $40,000, what is theoperating leverage?a. 3.000b. 7.500c. 1.875d. 4.500

Step 1: Define Operating LeverageOperating leverage calculates the volatility of the operating…

Answered: If sales are $300,000, variable costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Calculate Operating Leverage from the following ?Contribution = 100,000 Fixed Cost = 40,000 a. 2.5 b. 1.66 c. 0.4 d. None of these
Company XY Sales are 6 800 000 € and fixed costs are 2 400 000 €. Variable costs are 4 284 000 €. Calculate, what should company’s sales be if profit should be 60 500 € and you assume that contribution margin (%) is same as earlier?
4\ Management has at its disposal the following information: Price Information : P= 2400-30Q The profit-maximizing price: P=240 Dollar Find the Profit-maximizing quantity.
How do you solve for contribution margin? For general accounting question
A firm produces according to the following production function: F(L,K)=L0.7K0.3. The price of capital is $3 and the wage rate is $7. What is the optimal combination of labor and capital in order to produce 100 units of output? Multiple Choice L*=50,K*=50 L*=100,K*=50 L*=100,K*=100 L*=10,K*=10
Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $161280. What is the breakeven point in dollars? O $252000 O $645120 O $504000 O $1008000
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?
10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of P80,000. What is Cott's fixed cost? a. P16,000 b. P24,000 c. P80,000 d. P96,000 e. None of these; answer is
Consider the following duopoly model and determine profit - maximizing output and price for q_1+ q 2 TC_1 = 10 q_(1) TC_2 = 10 q_2 each firm. P = 200 - Q Industry Demand Q =
Q.44. Maron has to know that if sales are at P2,00,000, Fixed cost= P30,000 PV ratio =40% What will be the profit?
Lion Completion Status: 30 50 7D 10 11D 12D 13D 140 15 16 17 18 19 20 21 22 23 24 25 26 27 Moving to another question will save this response. Question 10 If Q equals the level of output, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, then the degree of operating leverage is equal to: O [P-V)QI/[(P-V)Q- F]. O F/(P-V). O Q(P-V). F/[(P-V)/P].
1. The function of a company's product to produce output at the level of input use is Q = -1/3x3 + 9x3 + 70. If the input price x used is IDR. 800, - per unit, while the output price is IDR. 10, - per unit, specify: a. The amount of input that must be used by the company in orderto produce the amount of output that provides maximum finance! How much is the output? b. What is the average size of the company?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

If sales are $300,000, variable costs are 60% of sales, and operating income is $40,000, what is the operating leverage? a. 3.000 b. 7.500 c. 1.875 d. 4.500