If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage?
Q: Hello tutor please help me this questions
A: Step 1: Definition of Overhead CostOverhead cost refers to indirect expenses incurred in the…
Q: G Company budgets sales of $2,250,000, fixed costs of $62,900, and variable costs of $280,600. What…
A: Concept of Sales RevenueThe sales revenue represents the total income generated by a company from…
Q: Calculate the goodwill of the firm
A: Explanation of Goodwill: Goodwill is an intangible asset that represents the excess value of a…
Q: General Account
A: Step 1: Definition of Gross ProfitGross profit is the amount a company earns from its core business…
Q: Need help with this general accounting question
A: Step 1: First, we need to calculate the average accounts receivable. Average Accounts Receivable =…
Q: None
A: Let's calculate the expected price of UPS stock using the method of comparables.Method of…
Q: Abc
A: Let's calculate the new cost of equity for PayPal (PYPL) if it takes on the average amount of debt…
Q: Financial Accounting Question
A: Step 1: Define Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio measures the valuation…
Q: Annual loan payment?
A: The question requires the determination of the annual loan payment of an amortized loan.…
Q: 5 POINTS
A: Given:Opening count = 240 itemsUsed items = 185Damaged items = 15Closing count =…
Q: Accountants use only a) variable. b) implicit. c) opportunity. d) explicit. costs in their…
A: Step 1: Definition of Explicit CostsExplicit costs are actual, recorded expenses that a business…
Q: hi expert please help me
A: Step 1: Definition of Manufacturing OverheadManufacturing overhead refers to all indirect costs…
Q: Need help with this financial accounting question not use ai
A: Return on equity (ROE) = Net income/Average equity =…
Q: need help this questions
A: Step 1: Definition of Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) is the average number…
Q: Subject is financial account
A: Step 1: Definition of Common Stock and Contributed Capital in Excess of ParCommon Stock represents…
Q: Question 25
A: Concept of Retained EarningsRetained earnings represent the cumulative net income of a company that…
Q: None
A: 1. Determine the weights of equity and debt:Weight of equity = 70% = 0.70Weight of debt = 30% = 0.30…
Q: Need help this question solution
A: Step 1: Definition of Sales RevenueSales revenue is a nominal account with a credit balance. It…
Q: Calculate the plantwide factory overhead rate
A: Explanation of Plantwide Factory Overhead Rate: This is a single overhead rate used across all…
Q: help me to solve this questions
A: Step 1: Definition of Overapplied Manufacturing OverheadOverapplied manufacturing overhead occurs…
Q: Compute the anticipated break even sales and sales required?
A: Step 1: Definition of Target SalesTarget sales are the desired level of sales that a business seeks…
Q: What is the bid price for this special order?
A: Explanation of Direct Materials Cost:Direct materials cost refers to the cost of raw materials that…
Q: The industrial enterprise "HUANG S.A." purchased a sorting and packaging machine from a foreign…
A: A) Determination of the Acquisition Cost of the Multifunction MachineDefinition: According to IAS…
Q: In a certain standard costing system, the following results occurred last period: total labor…
A: Concept of Labor Rate VarianceThe Labor Rate Variance measures the difference between the actual…
Q: financial accounting
A: Step 1: Definition of PayrollPayroll refers to the process of calculating and distributing employee…
Q: How much of every retail sales dollar is made up of merchandise cost on these general accounting…
A: Step 1: Define Cost-to-Sales RatioThe Cost-to-Sales Ratio (also called the Cost-to-Retail…
Q: General Accounting problem
A: Detailed explanation:Given:Total Debt $ 6666Debt to Equity Ratio 0.59 Question: What is the value of…
Q: Capitalisation method
A: Explanation of Goodwill:Goodwill is an intangible asset that represents the value of a business…
Q: General accounting
A: The units sold to earn the desired profit is calculated as follows: Units sold to earn desired…
Q: What is the amount of the annual net income for this financial accounting question?
A: Step 1: Define Annual Net Income Using ARRAnnual Net Income using the Accounting Rate of Return…
Q: General Accounting
A: Step 1: Define Receivables Turnover RatioThe Receivables Turnover Ratio measures how efficiently a…
Q: financial accounting is
A: To determine the capital gains rate, we use the total return formula for a stock: Total Return =…
Q: Crestwood Industries mixes together sugarcane residue and ethanol. After joint manufacturing costs…
A: To determine the net increase (or decrease) in operating income from further processing the biomass…
Q: None
A: a) Rate Earned on Stockholders' Equity:This ratio measures the profitability of the company from the…
Q: Provide answer
A: The question pertains to determining the financial impact of cutting a fixed cost in relation to the…
Q: Financial Accounting Question please answer
A: Let's go step by step to solve both parts. Given data:Owners' equity = $400,000Net income =…
Q: High value Hardware began
A: To calculate **net sales**, we need to account for **estimated sales returns** and **actual returns.…
Q: Please give me true answer this financial accounting question
A: Step 1: Define Expected Return Using CAPMThe Expected Return Using the Capital Asset Pricing Model…
Q: What are its after tax earnings? General accounting question
A: To calculate after-tax earnings (Net Income), we follow these steps: Identify Given Data EBIT…
Q: Stockholders's equity
A: ImageExplanation.To determine the market value of stockholders' equity, we start by calculating the…
Q: General accounting questions please given answer
A: ImageExplanation.he problem requires us to determine PayPal's new cost of equity if it takes on debt…
Q: Financial Accounting MCQ
A: Concept of Inventory Turnover RatioThe Inventory Turnover Ratio measures how many times a company…
Q: expert of general account answer
A: Step 1: Information givenMarket-to-book ratio = 3.20 timesPE ratio = 5.40 timesMarket price per…
Q: A firm has net working capital of $980, net fixed assets of $4,418, sales of $9,250, and current…
A: 1. Calculate Total AssetsTotal assets = Net working capital + Net fixed assetsTotal assets = $980 +…
Q: financial accounting
A: The accounting equation states: Assets=Liabilities+Equity Where equity consists of Contributed…
Q: provide correct answer general accounting
A: Step 1: Definition of Long-Term Capital Gain (LTCG)A long-term capital gain (LTCG) arises when an…
Q: Subject financial accounting
A: Step 1:First, calculate the value of equity: Debt / Equity = 1.80(Total assets - Equity) / Equity =…
Q: Compute by The straight line method
A: Step 1:The straight-line method is the easiest method to calculate the depreciation expense. It is…
Q: correct answer please general accounting
A: Step 1: Definition of Cost of Goods Sold (COGS)The Cost of Goods Sold (COGS) represents the direct…
Q: Subject:- General Account
A: Step 1: Definition of Accounting EquationThe accounting equation serves as a basis for the balance…
If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage?
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- What is the opereting leverage?If sales are $295,000, variable costs are 75% of sales, and operating income is $51,500, the operating leverage is a.4.3 b.1.1 c.1.4 d.0.0At an output level of 19,500 units, you have calculated that the degree of operating leverage is 2.92. The operating cash flow is $66,300 in this case. Ignoring the effect of taxes, what are fixed costs?
- Can you please answer this general accounting question?At an output level of 19,500 units, you have calculated that the degree of operating leverage is 2.92. The operating cash flow is $66,300 in this case. Ignoring the effect of taxes, what are fixed costs? Provide answerI need this general accounting question