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 __.
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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 __.
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- 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 __. AnsThe degree of operating leverage is?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 __. Accounting
- 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?Need help with this accounting questionsCompany 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.
- The following income statement applies to Finch Company for the current year: Income Statement Sales revenue (480 units × $30) $ 14,400 Variable cost (480 units × $15) (7,200 ) Contribution margin 7,200 Fixed cost (4,000 ) Net income $ 3,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that FinchThe following income statement applies to Munoz Company for the current year: Income Statement Sales revenue (440 units x $34) Variable cost (440 units x $19) Contribution margin Fixed cost 3 Net income $14,960 (8,360) 6,600 (4,400) $2,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that Munoz Company will earn if it experiences a 10 percent increase in revenue. The sales price per unit is not affected. c-1. Verify your answer to Requirement b by constructing an income statement based on a 10 percent increase in sales revenue. The sales price is not affected. c-2. Calculate the percentage change in net income for the two income statements. Complete this question by entering your answers in the tabs below. Req A and B Req C1 Req C2 a. Use the contribution margin approach to calculate the magnitude of operating leverage. b.…The degree of opereting leverage?