Subject accounting Ingram Enterprises has variableexpenses equal to 65% of sales. At a$500,000 sales level, the degree ofoperating leverage is 4.5. If salesincrease by $50,000, what will be thenew degree of operating leverage?

Step 1: Original contribution margin The basis is the sales so the sales ratio is 100%Contribution…

Answered: Ingram Enterprises has variable…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

Boom Company has sales volume of 70,000 units with a unit selling price of $120 per unit. The variable expenses are $80 per unit, and the total fixed expenses are $2,100,000. 15. What is the degree of operating leverage? * 2.00 3.00 4.00 5.00 None of the above 16. If the sales volume increases by 15%, and all other items are the same, what will be the effect on the net operating income? * The net operating income will increase by $420,000 The net operating income will increase by $700,000 The net operating income will increase by $1,120,000 The net operating income will increase by $2,800,000 None of the above O O O
What is the degree of opereting leverage?
What is Harley's operating leverage? 3.1, 1.3 or 1.2
Cohen’s Bowling Emporium has a degree of financial leverage of 2.0 and a degree of combined leverage of 4.0. The breakeven sales level for Cohen’s has been estimated to be $700,000. Fixed costs total $250,000. What effect will a 14 percent increase in sales have on EBIT? Round your answer to the nearest whole number. %ΔEBIT: %
(Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $150,000 and net operating income of $34,000. If sales increase by 18 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 21 percent? If sales increase by 18%, the change in the firms NOI will be (a decrease or increase) of _ %
A firm has fixed operating costs of R650,000, a sales price per unit of R20, and a variable cost per unit of R13. At a base sales level of 500,000 units, what is the firm's degree of operating leverage. (1)
1. If ABC company achieves its projections, what will be its degree of operating leverage?
A firm’s contribution margin ratio is 18.4%. If the degree of operating leverage is 15.6 at the $223.1k sales level. Given this information, calculate the firm’s net operating income.
If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? Right Answer
Accounting EBIT?
What is the degree of opereting leverage???
What is the degree of opereting leverage?

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

Ingram Enterprises has variable expenses equal to 65% of sales. At a $500,000 sales level, the degree of operating leverage is 4.5. If sales increase by $50,000, what will be the new degree of operating leverage?