Mountain View Restaurant has a monthly target operating income of $8,000. Their variable expenses are 45% of sales, and monthly fixed expenses are $4,800. Calculate Mountain View's operating leverage factor at the target level of operating income.
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- Neeley Grocery has a monthly target operating income of $25,000. Variabe expenses are 20% of sales and monthly fixed expenses are $15,000. What is Neeley Grocery's operating leverage factor at the target level of operating income?Alina’s Catering has a monthly target operating income of $16,000. Variable expenses are 40% of sales and monthly fixed expenses are $14,000. What is Alina’s operating leverage factor at the target level of operating income?PB&J Eatery has a monthly target operating income of $8,400. Variable expenses are 60% of sales and monthly fixed expenses are $12,600. What is PB&J Eatery's operating leverage factor at the target level of operating income? Round answer to one decimal place. Answer:
- Matthew’s Fish has a monthly target operating income of $6,800. Variable expenses are 70% of sales and monthly fixed expenses are $1,380. What is Matthew’s operating leverage factor at the target level of operating income?Light Me Up Lamps has variable expenses of 30% of sales and monthly fixed expenses of $140,000. The monthly target operating income is $80,000. What is Light Me Up Lamps' operating leverage factor at the target level of operating income?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) $
- Light Me Up Lamps has variable expenses of 40% of sales and monthly fixed expenses of $240,000. The monthly target operating income is $60,000. Compute the monthly margin of safety in dollars if Light Me Up Lamps achieves its operating income goal.= Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Hint: The contribution margin ratio= 100% - Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. = Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) The margin of safety is Requirement 2. Express Adam's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Adam's operating leverage factor at the target level of operating income? Begin by identifying the…Please solve this question general accounting
- Carter's Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of sales, and monthly fixed expenses are $8,000. Hint: The contribution margin ratio = 100%- Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Requirements = Margin of safety in dollars - X 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Carter's margin of safety as a percentage of target sales. 3. What is Carter's operating leverage factor at the target level of operating income? 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%? Print Doneawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales $ 37,000,000 Operating expenses: Variable expenses $ 22,200,000 Fixed expenses 7,400,000 Total expenses 29,600,000 Operating profit $ 7,400,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $8,500,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 8%? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)Current operating income for Bay Area Cycles Company is $46,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $184,000. Required: 1. Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? 2. How many additional unit sales would be necessary to achieve operating income of $115,000? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are currently being sold? Revenue Variable expense Contribution margin Fixed expense Operating income Per Unit Volume $ 100.00 Total Ratio 100 % + % 25 % (184,000) 46,000
