provide correct answer is? Question:Sales120000 20less variable expenses72000 12contribution margin48000 8less fixed expenses net income 30000net income18000a. What is the company s CM ratio?b. If quarterly sales increase by $4,800 and there is no change in fixedexpenses, by how much would you expect quarterly net operatingincome to increase?

Step 1: Definition of Operating LeverageOperating leverage is the ratio of the contribution margin…

Answered: Question: Sales 120000 20 less variable…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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How much would you expect quarterly net operating income to increase?
Suppose Micro-Shave growth rate in sales is forecast as 13% rather than 10%. If all ratios stay the same, what is the AFN? Sales growth rate So Ao / So Lo / So Profit margin (M) Payout ratio O $ 170.74 O $240.50 O $ 205.62 O None of these are correct 13% $3,000 million 66.666% 6.667% 3.783% 50.670%
A segment has the following data: Sales $790000 Variable expenses 345000 Fixed expenses 550000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? $345000 increase $445000 decrease Cannot be determined from the data provided $5750 decrease
Assuming costs vary with sales and a 20 percent increase in sales is projected, create the pro forma income statement. Create a pro forma Balance Sheet. All items will vary with sales. What is the plug variable in order for this to balance? Suppose no dividend is planned to be issued next year. What is the plug variable?
2. Conceptual Connection: Compute net profit margin for ERS. Round your answer to one decimal place. 6.6 % A If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit? 3. Conceptual Connection: Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability? A declining profit margin implies that ERS is having difficulty maintaining control over its expenses.
Company XYZ is currently making sales of $200,000. At this level, the variable expenses were $160,000. Assume that company XYZ expects sales to increase to $450,000 in the coming period with no change is expected to fixed expenses. How much is the expected change in profit? a. Cannot be determined O b. Increase by $160,000 O c. Increase by $10,000 d. Increase by $50,000 е. Increase by 40,000
1.) what is the break-even in dollar sales? 2.) what is the margin of safety percentage? 3.) what is the degree of operating leverage ? (Round your answer to 2 decimal places.) 4.) using the degree of operating leverage and without changing anything, calculate the percentage change in net operating income if unit sales increase by 20% ?
Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Sales Costs Net income The company has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Create the pro forma statements and reconcilie them. What is the plug variable here? $ 23,000 14,300 $8,700 Total Multiple Choice $9,195 $9,204 $9.217 $19,612 Assets $9,99 Balance Sheet $9,500 Debt Equity $9,500 Total $5,500 4,000 $9,500
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Please provide answer the accounting question not use ai

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