Please given me answer accounting Meridian Industries reports a total contribution margin of $360,000and pretax net income of $90,000 for the current quarter. What isthe company's degree of operating leverage?

Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL) is a…

Answered: Meridian Industries reports a total…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 22MC: If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month,...

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Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of income will Singh Co. expect?
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The degree of operating leverage (DOL) for Neptune Inc. and Ardent Ltd. are 2.3 and 4.9, respectively. Both companies have net incomes of $62,450. Determine their respective contribution margins.
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What is the degree of operating leverage on these accounting question?
Company H wants to calculate degree of operating, financial and combined leverage for the company using 2018 financial data. The financial data are as follows: Sales (80,000 units) S800,000 Variable costs S250,000 $550,000 $150,000 Contribution Fixed costs $400,000 $50,000 Operating income Interest Earnings before taxes $350,000 What is the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of Combined Leverage (DCL)? a. DOL is 1.143; DFL is 1.132 and DCL is 1.571. b. DOL is 1.571; DFL is 1.143 and DCL is 1.143. c. DOL is 1.143; DFL is 1.143 and DCL is 1.137. d. DOL is 1.375; DFL is 1.143 and DCL is 1.571.
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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.

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Meridian Industries reports a total contribution margin of $360,000 and pretax net income of $90,000 for the current quarter. What is the company's degree of operating leverage?