Morse Company reports a total contribution margin of $112,000 and pretax net income of $16,000 for the current month. The degree of operating leverage is __.
Q: What must have been the credit sales for April on these financial accounting question?
A: Step 1: Define Credit SalesCredit sales are sales made by a company where payment is deferred and…
Q: Himani Co. computes its predetermined overhead rate annually on the basis of direct labour-hours. At…
A: The predetermined overhead rate (POHR) is calculated using the following formula: POHR = Estimated…
Q: What is the gross profit margin?? General accounting
A: The gross profit margin is calculated using the formula: Gross Profit Margin = (Gross Profit /…
Q: What was the allocation to product X
A: Step 1: Calculate the total overhead for all productsTotal overhead for Department 1:…
Q: A new machine with a purchase price of $90,000, transportation costs of $8,000, installation costs…
A: Concept of Cost BasisThe cost basis refers to the total cost incurred to acquire an asset and…
Q: General accounting
A: The units-of-production method calculates depreciation based on usage, such as miles driven. Here's…
Q: Provide answer general Accounting question
A: Step 1: Define Basic Earnings per ShareA company's basic earnings per share is the net income…
Q: None
A: Step 1: Definition of Debt to Equity RatioThe debt to equity ratio measures the proportion of a…
Q: A firm has a debt to equity ratio of 40%, debt of $350,000, and net income of $95,000. The return on…
A: 1. Calculate Total Equity:Debt-to-Equity Ratio = Total Debt / Total Equity0.40 = $350,000 / Total…
Q: None
A: To compute the net income for the year, we use the following formula: Net Income = Increase in…
Q: 5 PTS
A: Problem BreakdownCost to produce Part T5 in 2011: $9 per unit (not relevant for this decision…
Q: What was her capital gains yield??
A: Step 1: Given Value for Calculation Purchase Price = p = $42.67Selling Price = s = 43.89 Step 2:…
Q: I don't need ai answer accounting questions
A: Step 1: Definition of Recognized GainRecognized gain is the portion of a realized gain that is…
Q: Answer this accounting problem
A: Explanation of Sales: Sales, which is $4,558,780 in this case, represents the total revenue…
Q: The company should record
A: To determine what the company should record when the asset is sold, we need to calculate any…
Q: What is the firm's equity?
A: To calculate the firm's equity, we use the basic accounting equation: Assets = Liabilities + Equity…
Q: Blake factoring
A: Step 1: Given Value for Calculation Purchase Price = p = $185,000Number of days = n = 75 daysAmount…
Q: Cost accounting
A: A $5 million reduction in COGS would increase the before-tax profit by $5,000,000 because COGS is…
Q: Kindly help me with accounting questions
A: Given:Taxable Income = $800,000Corporate Tax Rate = 30%Calculation:Tax Payable = Taxable Income x…
Q: Provide correct answer general accounting
A: Step 1:Under activity-based costing, the activity rate is calculated by dividing the total activity…
Q: provide general account
A: The product costs are the costs directly associated with producing goods, which include direct…
Q: Cool Comfort currently sells 360 Class A spas, 520 Class C spas, and 230 deluxe model spas each…
A: To calculate the value of erosion from adding the mid-class spa, follow these steps:Step 1:…
Q: Monarch Consultants Corporation obtained a building, its surrounding land, and a computer system in…
A: Concept of Lump-Sum PurchaseA lump-sum purchase refers to the acquisition of multiple assets in a…
Q: Financial accounting question
A: Step 1: Define Debt-to-Equity RatioThe Debt-to-Equity Ratio measures a company's financial leverage…
Q: Don't use ai given answer accounting questions
A: The accounts receivable turnover is calculated using the formula: Accounts Receivable Turnover = Net…
Q: Provide answer general accounting question
A: Step 1: Calculate the Gain on SaleThe equipment originally cost $24 million, and its book value…
Q: please solve this question general accounting
A: Step 1: Define Operating and Financial Leverage (Short)Operating Leverage: Measures the sensitivity…
Q: Calculate the cost per equivalent unit of conversion
A: Explanation of Weighted-Average Method: This is a process costing method that combines beginning…
Q: Need answer
A: The question requires the determination of the coefficient of variation.The coefficient of variation…
Q: Ans
A: Step 1: Definition of Capital GainCapital gain is the profit earned from selling a capital asset…
Q: Sandy's Sauces, which produces stir-fry sauces, is developing direct material standards. Each bottle…
A: To calculate the standard quantity of base per bottle, we need to consider the following…
Q: Algers Company produces dry fertilizer. Compute the variable overhead efficiency variance. At the…
A: Step 1: Formula for Variable Overhead Efficiency Variance Variable Overhead Efficiency Variance…
Q: Overhead rate for the year
A: To calculate the predetermined overhead rate (POHR), we use the following formula: POHR = Estimated…
Q: Sub: financial accounting
A: Explanation of Variance: This is a statistical measure that quantifies how far numbers in a dataset…
Q: Financial accounting MCQ
A: A subsidiary ledger is used to provide detailed information that supports a control account in the…
Q: Please answer this account problem
A: Explanation of Return on Equity (ROE):Return on Equity (ROE) is a financial metric that measures a…
Q: Harms Shoe Company applies manufacturing overhead based on the number of units as the cost driver.…
A: Step 1: Calculate total direct labor costStep 2: Add direct materials costStep 3: Add manufacturing…
Q: General accounting
A: To calculate the long-term debt, we need to use the accounting equation and the given information.…
Q: None
A: The question requires the determination of the cost per unit. Cost per unit encompasses both the…
Q: Conversion cost during the month totalled
A: Explanation of Conversion Costs:Conversion costs refer to the expenses incurred to convert raw…
Q: Quick answer of this accounting questions
A: To calculate the overhead rate for each activity, you need to divide the total overhead for each…
Q: Hii expert please given correct answer general Accounting question
A: To calculate the Return on Capital Employed (ROCE), we use the following formula: ROCE = (EBIT /…
Q: Calculate the cost per equivalent unit of conversion
A: To calculate the cost per equivalent unit of conversion, follow these steps: Step 1: Calculate the…
Q: Need help with this financial accounting
A: Step 1: Define Asset Recording ValueAssets are recorded at fair market value (FMV) at the time of…
Q: provide correct answer this general account
A: Analyzing the Accounting EquationThe accounting equation is: Assets=Liabilities+Equity We analyze…
Q: Solve this general accounting problem
A: Step 1:A bond is the financial instrument that is used to raise funds for business operations. When…
Q: Alleyway Corp. manufactures two styles of a leather bowling bag, the Strike and Turkey. Budgeted…
A: Step 1: Introduction to budgetingBudgeting is defined as the process of preparing a financial plan…
Q: Financial accounting question
A: Step 1: DefinitionStandard Direct Labor Rate Per Hour: The total hourly labor cost for production,…
Q: Financial Accounting Question
A: Step 1: Identify the formulaStep 2: Identify the given valuesStep 3: Substitute the values into the…
Q: A company s manufacturing overhead includes $7.10 per machine hour
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a method used by…
Morse Company reports a total contribution margin of $112,000 and pretax net income of $16,000 for the current month. The degree of operating leverage is __.
Step by step
Solved in 2 steps
- Company A has current sales of $11,132,680 and a 32% contribution margin. Its fixed costs are $2,280,726. Company B is a service firm with current service revenue of $6,286,402 and a 24% contribution margin. Company B’s fixed costs are $686,218. Compute the degree of operating leverage for Company A. Round to the hundredth, two decimals.Company A has current sales of $11,797,718 and a 36% contribution margin. Its fixed costs are $2,911,015. Company B is a service firm with current service revenue of $6,207,099 and a 15% contribution margin. Company B’s fixed costs are $604,274. Compute the degree of operating leverage for Company B. Round to the hundredth, two decimals.Accounting
- Company A has current sales of $10, 337, 376 and a 48% contribution margin. Its fixed costs are $2,242,728. Company B is a service firm with a current service revenue of $6,907, 643 and a 18% contribution margin. Company B's fixed costs are $620, 046. Using the degree of operating leverage for Company A, what will be the increase to net income if there was a 21% increase in sales? Round to the hundredth, two decimals.Company A has current sales of $10,717,172 and a 43% contribution margin. Its fixed costs are $2,370,653. Company B is a service firm with current service revenue of $5,488,617 and a 19% contribution margin. Company B’s fixed costs are $597,932. Compute the degree of operating leverage for Company B if there was a 12% increase in revenue. Round to the hundredth, two decimals.If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7
- Refer to the income statements in requirement 1 above. For both current operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollars, and (c) the margin of safety in both dollar and percentage terms.What is the contribution margin ratio for yountz company?Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. . Dollar sales for target income 2. Margin of safety $ 2,160,000 1,728,000 432,000 324,000 $ 108,000 %
- Jellico Inc.’s projected operating income (based on sales of 450,000 units) for the coming year isas follows:TotalSales $11,700,000Total variable cost 8,190,000Contribution margin $ 3,510,000Total fixed cost 2,254,200Operating income $ 1,255,800Required:1. Compute: (a) variable cost per unit, (b) contribution margin per unit, (c) contribution margin ratio, (d) break-even point in units, and (e) break-even point in sales dollars.2. How many units must be sold to earn operating income of $296,400?3. Compute the additional operating income that Jellico would earn if sales were $50,000 morethan expected.4. For the projected level of sales, compute the margin of safety in units, and then in salesdollars.5. Compute the degree of operating leverage. (Note: Round answer to two decimal places.)6. Compute the new operating income if sales are 10% higher than expected.Adams, Inc. has sales of $100,000 with contribution a contribution margin of $60,000 and net income of $20,000. Baron, Inc. has sales of $110,000 with a contribution margin of $44,000 and net income of $22,000. Thus, the degree of operating leverage isThe controller of Pelly Corporation prepared the following projected income statement: Sales - $95,000 Total variable cost $68,400 Contribution margin - $26,600 Total fixed cost - $14,000 Operating Income - $12,600 A) Calculate the contribution margin ratio. B) Calculate the variable cost ratio. C) Calculate the break-even sales revenue for Pelly.