Kindly help me with accounting questions Parker Company sells wireless keyboards for$80. Variable costs are 50% of sales and totalfixed costs are $60,000. What is the firm'soperating leverage if 2,500 units are sold?

Step 1: Definition of Operating LeverageOperating leverage measures the sensitivity of a company's…

Answered: Parker Company sells wireless keyboards…

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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Sable Co. sells office stationery for $12.00 per package. The paper's variable cost per package is $7.00. Sable has fixed operating costs of $13,000 and fixed financing (interest) costs of $16,000. On average, Sable sells 10,000 units. What is Sables's degree of total leverage (DTL)?
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SmartTech Electronics sells wireless earbuds at $80 per unit. The variable cost per unit is $35, and fixed costs are $90,000 per year. What sales volume (in units) is needed to achieve a target profit of $60,000?
Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
The Weaver Watch Company sells watches for $25, the fixed costs are $140,000, and variable costs are $15 per watch.a. What is the firm’s gain or loss at sales of 8,000 watches? at 18,000 watches? b. What is the breakeven point? Illustrate by means of a chart.c. What would happen to the breakeven point if the selling price was raised to $31? What is the significance of this analysis?
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The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 430 clocks, what effect would the sale of additional 150 clocks have on operating income? Explain your answer. The sale of an additional 150 clocks would operating income by the amount of The total effect would amount to
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Pepper Inc. produces lacrosse sticks. The selling price per stick is $42. Their variable cost per unit is $28, and the fixed cost per unit is $12 when 8,000 units are produced and sold. Approximately how much in sales dollars must the company have to breakeven? O $6,857 $201,600 O $288,000 $192,667 O $48,000
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Parker Company sells wireless keyboards for $80. Variable costs are 50% of sales and total fixed costs are $60,000. What is the firm's operating leverage if 2,500 units are sold?