Please give me answer Accounting question Julia's Catering has a monthly target operating incomeof $6,000. Variable expenses are 40% of sales andmonthly fixed expenses are $3,600. What is Julia'soperating leverage factor at the target level of operatingincome?a. 0.40b. 1.60c. 2.67d. 0.63

Step 1: Define Operating LeverageOperating leverage is used to measure on how risky, sensitive, or…

Answered: Julia's Catering has a monthly target…

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

3. More-Power Company has projected sales of 75,000 regular sanders and 30,000 mini- sanders for next year. The projected income statement is as follows: Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Product margin Less: Common fixed expenses Operating income i. Regular Sander $3,000,000 1,800,000 $1,200,000 iii. iv. 250,000 $ 950,000 Regular Sander 75,000 60,000 30,000 30,000 a) Set up the given income statement on a spreadsheet (e.g., Excel™). Then, substitute the following sales mixes, and calculate operating income. Be sure to print the results for each sales mix (a through d). Mini-Sander $1,800,000 900,000 S 900,000 450,000 S 450,000 Mini Sander 37,500 60,000 90,000 60,000 Total $4,800,000 2,700,000 $2,100,000 700,000 $1,400,000 600,000 $ 800,000 b) Calculate the break-even units for each product for each of the preceding sales mixes.
HELP
If sales are.....accounting question
Kreter, Inc. earned net income of $300,000 last year. This year it wants to earn net income of $450,000. The company's fixed costs are expected to be $300,000, and variable costs are expected to be 70% of sales. Determine the required sales to meet the target net income of $450,000 using the mathematical equation. Required sales $ Using a CVP income statement format, prove your answer. Fixed costsTarget net income / (Loss)SalesVariable costsContribution margin $ Contribution marginFixed costsTarget net income / (Loss)SalesVariable costs Contribution marginSalesVariable costsFixed costsTarget net income / (Loss) Fixed costsVariable costsSalesTarget net income / (Loss)Contribution margin SalesFixed costsContribution marginVariable costsTarget net income / (Loss) $
• 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 ?
Please don't use Ai solution
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 $7,500 Fixed Costs $28,000
An economist estimates the demand function as P = 1250 15Q, where P is in dollars and Q is in number of Ipads sold per week. They also estimates that expenses vary with output according to the following cost equation: TC = 5000 + 25Q - 7.5Q2 + 1/3 Q^3 Suppose intense competition brings down prices and revenues. Calculate at what prices will the firm for each of the following cases: a) Make a normal profit? b) Incurs a loss but should continue to produce in the short - run? c) Incurs a loss but should shut down? With P = 815 and Q = 29
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
Need answer with correct calculation
Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%
Please help me with show all calculation thanku

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

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

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

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Julia's Catering has a monthly target operating income of $6,000. Variable expenses are 40% of sales and monthly fixed expenses are $3,600. What is Julia's operating leverage factor at the target level of operating income? a. 0.40 b. 1.60 c. 2.67 d. 0.63