Provide correct solution Julia's Catering has a monthly targetoperating income of $6,000. Variableexpenses are 40% of sales and monthlyfixed expenses are $3,600. What is Julia'soperating leverage factor at the target levelof operating income?a. 0.40b. 1.60c. 2.67d. 0.63

Step 1: Introduction to the Operating LeverageOperating leverage is used to measure on how risky,…

Answered: Julia's Catering has a monthly target…

Principles of Accounting Volume 2

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Chapter3: Cost-volume-profit Analysis

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Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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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.
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The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?
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) $
If sales are $325,000, variable costs are 75% of sales, and operating income is $45,600, what is the operating leverage? a. 1.3 b. 1.8 c. 0.0 d. 5.3
Please solve this question general accounting
Assume the following information: \table[[,Amount,Per Unit],[Sales,$300,000,$40

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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