Can you please solve this accounting question? NARU'S PARTIAL INCOME STATEMENT:SALES$1,200,000.00LESS: VARIABLE COSTS $700,000.00CONTRIBUTION MARGIN $500,000.00LESS: FIXED COSTS$250,000.00NET OPERATING INCOME $250,000.00WHAT IS NARU'S OPERATING LEVERAGE?

Step 1: Define Operating LeverageOperating leverage indicates an increase in operating income with…

Answered: NARU'S PARTIAL INCOME STATEMENT: SALES…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Operating leverage Asha Inc. and Samir Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Asha Inc. Asha Inc. Samir Inc. $265,500 (106,500) $159,000 (106,000) $53,000 $ $ Operating income a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. Samir Inc. Samir Inc. b. How much would operating income increase for each company if the sales of each increased by 10% ? If required, round answers to nearest whole number. Dollars Percentage $781,000 (468,600) $312,400 (170,400) $142,000 c. The difference in the contribution margin than are Samir Inc.'s. % % of operating income is due to the difference in the operating leverages. Asha Inc.'s operating leverage means that its fixed costs are a percentage of
2. A company provided the following information: Sales Variable costs Fixed costs P500,000 P100,000 P200,000 | Required: A. What is the contribution margin ratio? 500,000 – 100,000 = 400,000 "Contribution Margin" 400,000/500,000 = 0.8 What is the level of sales in amount necessary to generate a profit of P40,000? C. What is the contribution margin ratio if the sales price is increased by 10%? Using the information in part C, what level of sales in amount is necessary to generate a profit of P40,000? D. B.
Tom Company reports the following data: Sales Variable costs Fixed costs Determine Tom Company's operating leverage. Round your answer to one decimal place. $156,332 81,532 30,800
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Operating income a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. Beck Inc. Bryant Inc. $216,400 $576,000 (86,800) (345,600) $129,600 $230,400 (75,600) (86,400) $54,000 $144,000 b. How much would operating income increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Beck Inc. Bryant Inc. Dollars Percentage % % c. The difference in the of operating income is due to the difference in the operating leverages. Beck Inc.'s operating leverage means that its fixed costs are a margin than are Bryant Inc.'s. percentage of contribution
Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00 Variable Costs = 75% of Sales Operating Income = $40,000.00 Group of answer choices a. 0 b. 7.500 c. 1.875 d. 1.333
genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.
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NARU'S PARTIAL INCOME STATEMENT: SALES $1,200,000.00 LESS: VARIABLE COSTS $700,000.00 CONTRIBUTION MARGIN $500,000.00 LESS: FIXED COSTS $250,000.00 NET OPERATING INCOME $250,000.00 WHAT IS NARU'S OPERATING LEVERAGE?