If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? Correct Answer
Q: Silver manufacturing applied overhead using a normal costing
A: Explanation of Normal Costing: This is a costing method that uses actual direct costs but applies…
Q: Simons gross profit is
A: Explanation of Gross Profit:Gross profit is the amount remaining after subtracting the cost of goods…
Q: What is the firm's asset turnover of this financial accounting question?
A: Step 1:The formula to calculate return on equity using the Du Pont analysis is as follows: Return on…
Q: provide correct answer general accounting
A: Step 1: Definition of Net IncomeNet income is the profit earned by a company after deducting all…
Q: Industry average?
A: The question requires the determination of the accounts receivable balance. The average accounts…
Q: Can you help me with accounting questions
A: Step 1: Definition of Cash Flow from OperationsCash flow from operations (CFO) represents the net…
Q: MCQ
A: Explanation of Make or Buy Decision: This is a strategic choice that companies face when deciding…
Q: Express the gross profit amount as a percentage of the sales amount for dyson
A: Formula:(Gross Profit / Sales) * 100Using the data provided:(18,150 / 72,900) * 100 = 24.90%…
Q: provide correct answer general accounting
A: Step 1: Definition of Return on EquityReturn on Equity (ROE) is a ratio that represents the amount…
Q: provide correct answer general accounting
A: Step 1: Definition of Net IncomeNet income refers to the total earnings of a business after…
Q: answer
A: The key to determining net income lies in understanding how retained earnings change over the course…
Q: Provide correct answer this general accounting question
A: Step 1: Define Units Completed in a Process Costing SystemIn a process costing system, units…
Q: need help this questions
A: Step 1: Definition of Net IncomeNet income refers to the amount an individual or business retains…
Q: None
A: This question is about estimating PayPal's new cost of equity after taking on debt, using the…
Q: generaal account answer wanted
A: 1. Calculate the current net income:Revenue: $3,000,000Variable Costs: 50% of $3,000,000 =…
Q: Ans. General Account
A: Step 1: Definition of Gross Profit PercentageThe gross profit percentage (gross margin) measures the…
Q: ??
A: This paper computes labor rate variance using the specified data which includes labor hours, costs,…
Q: General Accounting
A: Step 1: Define Return on Assets (ROA)The Return on Assets (ROA) measures a company's profitability…
Q: I want answer
A: Explanation of Contribution Margin (CM): Contribution margin is the difference between total sales…
Q: None
A: Operating leverage is the level of operating risk or volatility in a firm's NOI relative to its…
Q: need help this questions
A: Step 1: Definition of Stockholders' EquityStockholders' equity represents the residual interest in…
Q: answer plz
A: Step 1: Determine the Beginning EquityStep 2: Determine the Ending EquityStep 3: Use the Retained…
Q: Labor rate variance?
A: Step 1: Labor rate variance occurs due to the change in labor rates from the standard labor rates.…
Q: general accounting
A: Step 1: Definition of Cash Collected from CustomersCash collected from customers represents the…
Q: Provide answer
A: Step 1:Net operating income is the income calculated by subtracting all operating expenses from the…
Q: provide correct answer general accounting
A: Step 1: Definition of Days' Sales in ReceivablesDays' sales in receivables, also known as the…
Q: Please given answer
A: Image.Explanation.The problem involves a savings account that earned $10 in interest over a 12-month…
Q: MCQ
A: Explanation of Variable Costing: Variable costing is a method of product costing that only includes…
Q: Get correct solution this financial accounting question
A: Step 1: Define Goodwill in an AcquisitionGoodwill is an intangible asset that arises when a company…
Q: Need answer
A: Data of Excess CapacitySelling Price = $20Units = 1,800Variable Cost = $16 Note: Fixed costs are not…
Q: Hello tutor please help me this questions
A: Step 1: Definition of Overhead CostOverhead cost refers to indirect expenses incurred in the…
Q: General accounting
A: The units sold to earn the desired profit is calculated as follows: Units sold to earn desired…
Q: I need help with this question is accounting
A: Step 1: Define Gross MarginThe gross margin indicates the financial performance of any business and…
Q: hello teacher please solve questions
A: Step 1: Definition of High-Low MethodThe high-low method is a cost estimation technique used to…
Q: What was this company's average collection period for 2023 on these general accounting question?
A: Step 1: Define Average Collection PeriodThe Average Collection Period measures the average number of…
Q: Need help with this question solution general accounting
A: 1. Calculate the change in fixed assets:Fixed assets at year-end: $875,000Fixed assets at last…
Q: Grayson corporation partial income statement is as follows
A: Explanation of Profit Margin: Profit margin is a key financial metric that measures how much profit…
Q: What is the income reported by meera auto repaira for the year?
A: Explanation of Total Assets:Total assets represent everything a business owns that has economic…
Q: L.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in…
A: Part 2: Explanation (Detailed Analysis)2014 Data:• Sales: 450,000 pairs• Peak Backorder: 100,000…
Q: need help this questions
A: Step 1: Definition of Gross ProfitGross profit is the amount remaining after deducting the cost of…
Q: Subject = General Account
A: Step 1: Definition of Adjusted BasisThe adjusted basis refers to the original cost of an asset,…
Q: Mala Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the…
A: Step 1: Introduction factory overheadFactory overheads are defined as indirect costs that are not…
Q: What was the average collection period of the receivable in terms of days?
A: Explanation of Average Collection Period:The Average Collection Period measures the average number…
Q: Hello tutor please solve this question general accounting
A: Given Data: Sales = $80,000 Contribution Margin = $50,000 Operating Profit = $20,000 (a) Compute…
Q: Abc
A: Step 1: Identify the given informationRetained Earnings (Current Year) = $101,000,000Retained…
Q: Subject. General Account
A: To determine the percentage increase in net income when sales increase by 20%, we will use the…
Q: What are the direct materials price variance?
A: Step 1: Define Materials VarianceA firm's total materials cost variance can be bifurcated into…
Q: Answer this MCQ
A: Explanation of Manufacturing Overhead Rate: This is a predetermined rate used to allocate indirect…
Q: General accounting
A: Equity is calculated using the accounting equation: Assets = Liabilities + Equity Rearranging for…
Q: What are the total product costs for the company
A: Explanation of Variable Costing:Variable costing is a costing method that includes only variable…
If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? Correct Answer
Step by step
Solved in 2 steps
- If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? Right AnswerIf sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? QuestionIf sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage?
- Give true answerIf the contribution margin ratio solve this questionConsider the following information in your analysis of degree of operating leverage. Unit sales price Unit variable costs Total fixed costs Units sold REQUIRED: Compute for the following: 1. Degree of operating leverage (DOL) 2. The percentage change in operating income P 200 120 550,000 10,000 units 3. How much must be the increase in operating income if sales increase by 40%?
- a. Given the following graphs, calculate the total fixed costs, variable costs per unit, andsales price for Firm A. Firm B’s fixed costs are $120,000, its variable costs per unit are$4, and its sales price is $8 per unit.b. Which firm has the higher operating leverage at any given level of sales? Explain.c. At what sales level, in units, do both firms earn the same operating profit?i want to this question answerCalculate 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