Answered: Kendall Company has sales of 1,000…

Kendall Company has sales of 1,000 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $30,000, what is the degree of operating leverage?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: What is the net profit?

A: Explanation: Net profit can be calculated as = Sales - Cost of goods sold - Period cost Sales are…

Q: MCQ Financial Accounting Non-controlling interests in a partial acquisition are measured at? i) Book…

A: Concept of Non-Controlling Interests (NCI):Non-controlling interests represent the portion of equity…

Q: What is the book values of the equipment ?

A: Explanation of Book Value:The book value of an asset is its net value on the company's balance…

Q: (16) FINANCIAL ACCOUNTING PRODUCT Y HAS FIXED COSTS OF 3,460,000 AND VARIABLE COSTS PER UNIT OF 250…

A: Part (I): Break-Even Point We need to calculate how many units must be sold to cover all costs…

Q: Jessup Company expects to incur overhead costs of $20,000 per month and direct production costs of…

A: To calculate the sales price per unit, we can follow these steps: Step 1: Calculate total costs The…

Q: Help

A: The question pertains to quality cost involved in TQM. TQM is an integrative management philosophy…

Q: What is the profit margin??

A: To calculate the profit margin, use the formula: Profit Margin =(Net Income / Sales) ×100 Given:Net…

Q: ??

A: Important Note: since nothing was mentioned about the rounding off of calculations, please note that…

Q: I Need solution

A: Opportunity cost is basically defined as the benefits which are foregone when a better alternative…

Q: Cost Account

A: Correct Answer: D. A product cost Explanation:A cost incurred as part of the production process is…

Q: General Accounting

A: Step 1: Define ErosionErosion refers to the reduction in the sales or profits of an existing product…

Q: Ans

A: ROCE=Net Income per Share/Book Value per ShareWhere:Net Income per Share = Analysts' earnings…

Q: Answer this financial accounting question

A: Explanation of Dividend per Share (DPS):Dividend per share (DPS) refers to the amount of money a…

Q: A company had cash sales of $54,650, credit sales of $39,320, sale returns and allowances of $8,220,…

A: Total sales = Cash sales + Credit sales= $54,650 + $39,320= $93,970Sales returns and allowances =…

Q: Provide correct answer general Accounting question

A: Step 1: Define Return on Equity:Return on equity is a financial measure of determining the ability…

Q: Accurate Answer

A: Explanation of Sales Revenue: Sales revenue represents the total amount of money generated from…

Q: That issue interim financial statements ?

A: Definition of Interim Financial Reporting:Interim financial reporting refers to the preparation and…

Q: help me with this

A: Opportunity cost is:The benefit foregone from the next best alternativeOpportunity cost is the value…

Q: Correct answer

A: Explanation of Standard Labor Cost:Standard labor cost refers to the predetermined cost of direct…

Q: Hello tutor please help me this question

A: Question 1:Explanation: Integrated control frameworks establish interconnected controls that provide…

Q: Provide correct answer general Accounting question

A: To calculate the required values: (a) P/E Ratio: The Price-to-Earnings (P/E) ratio is calculated as:…

Q: Sub. General Account

A: FIFO (First-In, First-Out)The FIFO inventory method means that the earliest (first) inventory…

Q: Hogan Industries had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1,…

A: Step 1: Determine Total Sales RevenueThe sales revenue is calculated as: Sales Revenue=Units…

Q: During FY 2016 Bravo Manufacturing had total manufacturing costs are $520,000. Their cost of goods…

A: To determine the beginning Work-in-Process Inventory for FY 2016, we use the following formula for…

Q: None

A: Step 1: Define Shareholders' EquityShareholders' equity is the owner's fund, which is invested by…

Q: Problem related to Accounting: Raven Company has a target of earning $88,000 pre-tax income. The…

A: Explanation of Pre-tax Income: Pre-tax income, also known as income before taxes, represents a…

Q: Round your Answer

A: To calculate the firm's operating cycle, we need to determine the Days Sales Outstanding (DSO) and…

Q: Please give answer the general accounting

A: Step 1: Define Accounts Receivable ForecastingAccounts receivable forecasting estimates the amount a…

Q: Abc

A: The question requires the determination of the NPV. Net present value (NPV) is the difference…

Q: Answer this MCQ

A: Explanation of Tax Basis: Tax basis represents the original cost or value used to calculate gain or…

Q: Hii ticher please given correct answer? ? General Accounting question?

A: Step 1: Define Market Price of ShareThe market price of a share is the current price at which the…

Q: Provide answer

A: Explanation of Variable Cost: Variable cost represents the direct expenses that change…

Q: Needham pharmaceutical has a profit margin

A: Key Concept :DuPont formulaThe DuPont formula is a financial formula that shows how return on equity…

Q: Provide All General Accounting Question solution without Fails

A: Explanation for 1: When preparing cash flow statement, cash generated/provided is added, whereas,…

Q: Financial accounting question

A: Step 1: Define Price-Earnings Ratio (P/E)The Price-Earnings Ratio (P/E) is beneficial to the…

Q: The following are budgeted data: January February March Sales in units 15,300 20,600 18,300…

A: Required Raw Material Purchases = Raw Materials Needed for Production + Desired Ending Inventory −…

Q: Please solve this question

A: Calculation of Underfunded Project Benefit Obligation at the end of 2010Underfunded Project Benefit…

Q: Need help with this accounting questions

A: Step 1: Definition of Profit MarginThe profit margin is a financial ratio that indicates the…

Q: Help me with this

A: Impact of Rising Inventor Levels on Financial StatementsBalance Sheet:Increased Current Assets:…

Q: fINANCIAL ACCOUNT

A: Step 1: Formula for Gross Profit Percentage Gross Profit Percentage=(Net SalesGross Profit)×100…

Q: A company had cash sales of $54,650, credit sales of $39,320, sale returns and allowances of $8,220,…

A: Explanation of Net Sales:Net sales refers to the total revenue generated from sales after deducting…

Q: given answer General accounting question

A: Step 1: Given Value for calculation Minimum Balance = b = $500Interest Rate = r = 3% Step 2:…

Q: Information is available for Betty DeRose

A: Explanation of Beginning Inventory and Ending Inventory:Beginning Inventory is the value of goods…

Q: I want to this question answer general Accounting

A: Step 1: Define LiabilityIn financial accounting, liability refers to the amount a company owes to…

Q: Direct labour cost accounting problem

A: Given:Opening direct material = $53,000Purchase = $210,000Closing direct material = 47,000Direct…

Q: Need Answer of this General Accounting full answer

A: 1. Cost of goods sold and gross profitGiven:Beginning Inventory = $200,000Purchase = $800,000Closing…

Q: MCQ

A: (a) Costs increase with productionThis choice is inappropriate in terms of the learning curve.…

Q: How much was the firm's net income after taxes

A: 1. Calculate Earnings Before Interest and Taxes (EBIT):EBIT = Sales - Operating Costs -…

Q: What amount sales is necessary to earn desired profit?

A: Part 2: AnswerWe can solve this problem by using the concept of contribution margin. Here's…

Q: GENERAL ACCOUNT

A: Standard costs are predetermined or estimated costs for producing a product or delivering a service…

Question

What is the degree of opereting leverage? General accounting

Kendall Company has sales of 1,000 units at $60
a unit. Variable expenses are 30% of the selling
price. If total fixed expenses are $30,000, what is
the degree of operating leverage?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
What is the degree of operating leverage for this accounting question?
What is the degree of operating leverage?
Kendall Company has sales of 1,990 units at $63 a unit. Variable expenses are 42% of the selling price. If total fixed expenses are $64,000, what is the degree of operating leverage? Provide answer
Kendall company has sales...I need answer
Help
Kendall Company has sales of 1,990 units at $63 a unit. Variable expenses are 42% of the selling price. If total fixed expenses are $64,000, what is the degree of operating leverage?
Answer this question
Acme Company has sales of 2,375 units at $40 per unit. Variable expenses are 20% of the selling price. If total fixed expenses are $66,000, the degree of operating leverage is: O 1.90 O 9.50 O 2.07 O 7.60
Carson company has sales
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 operating leverage?