Please tutor help me correct answer this general accounting JamesJordanSalesVariable Costs$2,000,000 $2,000,0001,000,000 400,000Contribution margin 1,000,000 1,600,000Fixed costs800,0001,400,000Operating income$200,000 $200,000If the sales increase by 20%, with the variable cost per unit remaining constant andthe fixed costs not changing, what will be the increase in operating income for eachfirm?

Step 1: Define Degree of Operating LeverageThe degree of operating leverage (DOL) shows how the…

Answered: James Jordan Sales Variable Costs…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Fill In The Blank Outlast Company's projected profit for the coming year follows: Total Per Unit Sales P200,000 P20 Less: Variable costs (120,000) (12) Contribution margin 80,000 P8 Less Fixed expenses (64,000) Operating Profit P 16,000 Requirements: 1. How many units must be sold to earn a profit of P30,000? units 3. Compute the additional profit that Outlast would earn if sales were P25,000 more than expected? P 3. For the projected level of sales, what is the margin of safety? P 4. Suppose Outlast would like to earn operating income equal to 20 percent of sales revenue. How many units must be sold for this goal to be realized? units NOTE: *If your answer is in monetary value, OMIT the peso sign (ex: if the answer is One hundred pesos just type 100) **If your answer is in thousands value, do not put space/s between the numbers and do not forget to type comma to indicate thousand value (ex: if the answer is one thousand just type 1,000) ***If your answer has decimal places, round your…
You have the following data for product X: sales revenue $12,000, variable costs $8,000, allocated fixed costs $2,000. If you drop product X in the long term, total profit will: increase by $2,000 remain the same decrease by $2,000 O increase by $4,000 decrease by $4,000
Marigold Corp. has fixed costs of $2200000 and variable costs are 20% of sales. What are the required sales if Marigold desires net income of $200000? $12000000 $2750000 $11000000 $3000000
Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much? Sales $50,000 Variable Costs $9600 Fixed Costs $27,000
Alvarez Company is considering the following alternatives: Alternative A Alternative B Revenues $50,000 $60,000 Variable costs 30,000 30,000 Fixed costs 10,000 16,000 What is the incremental profit? Group of answer choices $0 $6,000 $4,000 $10,000
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2. A company provided the following information: Sales Variable costs Fixed costs P500,000 P100,000 P200,000 | Required: A. What is the contribution margin ratio? 500,000 – 100,000 = 400,000 "Contribution Margin" 400,000/500,000 = 0.8 What is the level of sales in amount necessary to generate a profit of P40,000? C. What is the contribution margin ratio if the sales price is increased by 10%? Using the information in part C, what level of sales in amount is necessary to generate a profit of P40,000? D. B.
PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales Less: Variable costs P20 (12) P 8 Contribution margin Less Fixed expenses Income 4. Suppose Outlast would like to earn operating income equ to 20 percent of sales revenue. How many units must be sold for this goal to be realized? 5. For the projected level of sales, compute the margin of safety.
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You have been provided with the following information: ere to search Multiple Choice Sales Less variable expenses Contribution margin Less fixed expenses Operating profit If unit sales decrease by 10%, how much will fixed costs have to be reduced by to maintain the current operating profit? $8,250 $11,000 Per Unit $25 14 $11 E Total $ 75,000 42,000 33,000 22,000 $ 11,000 N 4 37°F Mostly
Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price per unit $150.00 Contribution margin per unit $45.00 Total fixed costs $630,000 What is the break-even point in dollars? a.$2,100,000 b.$426,000 c.$189,000 d.$900,000

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