Reactor Inc. sells 800 units @ $60 each. Variable cost is 50% of sales price. Fixed cost = $15,000. What is the degree of operating leverage?
Q: What do Yavin's total assets equal ?
A: Provided Data:Owner's Equity = $1,150,000Total Liabilities = $490,000Dividends Paid = $60,000 (Note:…
Q: Financial accounting question
A: Step 1: Define Asset DisposalAsset disposal refers to the removal of a long-term asset from a…
Q: Conversion costs are added equally throughout the refining process.
A: Concept of Units Completed and Transferred Out:This refers to the number of units that have been…
Q: What is the largest possible total contribution margin that can be realized each period?
A: Concept of Contribution Margin:The contribution margin is the amount each unit of product…
Q: Please provide the accurate answer to this general accounting problem using appropriate methods.
A: Step 1: DefinitionsConcept of Receivables Turnover Ratio:Receivables Turnover Ratio measures how…
Q: A printer cost $65,000 when new and has accumulated depreciation of $60,000. Suppose Pixel Works…
A: Step 1: DefinitionsConcept of Book Value:Book Value is the value of an asset after accounting for…
Q: What would be the cost of the land be recorded as?
A: Explanation of Cost Principle: The cost principle is a fundamental accounting concept that requires…
Q: Accurate Value Hardware began in 2019 with a credit balance of $47,000 in the allowance for sales…
A: Explanation of Sales Revenue:Sales revenue refers to the total amount generated from selling goods…
Q: ??
A: Step 1: Definition of Asset Turnover RatioThe Asset Turnover Ratio measures how efficiently a…
Q: Can you solve this general accounting question with accurate accounting calculations?
A: Step 1: Define Actual Overhead CostActual Overhead Cost refers to the overhead expenses incurred…
Q: Your plant produces 100 snowmobiles per month. Direct costs are $2,300 per snowmobile. The monthly…
A: Explanation of Direct Costs: Direct costs are expenses that can be completely attributed to the…
Q: General Accounting Question
A: Step 1: Definition of Activity-Based Costing (ABC)Activity-Based Costing (ABC) is a costing method…
Q: I need help solving this general accounting question with the proper methodology.
A: Step 1: Define Average Collection PeriodThe Average Collection Period is a financial metric that…
Q: What is its operating leverage?
A: Contribution Margin = Fixed Cost + Operating ProfitContribution Margin = 320,000+80,000Contribution…
Q: Please explain the solution to this general accounting problem using the correct accounting…
A: Step 1: Define Built-in Gains Tax (BIG Tax)When a corporation converts from a C Corporation to an S…
Q: Right Answer
A: ExplanationGiven Information:Sales last year: $420 millionFixed assets: $310 millionCurrent capacity…
Q: Can you solve this general accounting question with accurate accounting calculations?
A: Step 1: Define Net IncomeNet income represents the company's total earnings or profit after…
Q: What is millstone's price-sales ratio?
A: To calculate Millstone's price-sales ratio, you will need the following information:Market…
Q: Can you explain the correct approach to solve this general accounting question?
A: Step 1: Definition of Direct Materials Purchases Budget The direct materials purchases budget…
Q: answer plez
A: 4. Compute the New Fixed Assets NeededSubtract the current fixed assets from the required fixed…
Q: Provide correct answer with accounting
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a profitability ratio that…
Q: I am trying to find the accurate solution to this financial accounting problem with the correct…
A: Step 1: Definition of Number of Days' Sales in Accounts ReceivableThe Number of Days' Sales in…
Q: Calculate the company's overhead rate based on total direct labor hours
A: Concept of Overhead:Overhead refers to all indirect costs associated with operating a business that…
Q: I need the correct answer to this financial accounting problem using the standard accounting…
A: Step 1: Define Cash from Operating ActivitiesCash from operating activities (indirect method) is…
Q: I am searching for the accurate solution to this financial accounting problem with the right…
A: Step 1: Definition of Current YieldCurrent yield is a measure of the annual income (interest or…
Q: How much Ron's taxable income?
A: Explanation of Gross Income:Gross income is the total income an individual earns before any…
Q: I am searching for the right answer to this financial accounting question using proper techniques.
A: Step 1: Define Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…
Q: What is the budgeted manufacturing cost per unit?
A: Explanation of Budgeted Manufacturing Cost: The budgeted manufacturing cost represents the total…
Q: Estimate MHs at the beginning of the period were
A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a budgeted rate used…
Q: Maple Co. estimated its annual manufacturing overhead at $300,000 based on 15,000 direct labor…
A: Step 1: Definition of Applied OverheadApplied overhead is the amount of manufacturing overhead that…
Q: What is the labor rate variance for the month ?
A: Provided Data:Standard labor hours per unit = 1.5 hoursStandard labor rate = $15.00 per hourActual…
Q: Can you explain the process for solving this financial accounting question accurately?
A: Step 1: Define Price/Earnings RatioThe Price/Earnings (P/E) Ratio is a financial metric used to…
Q: What is the correct answer general accounting question
A: Step 1: Definition of Raw Materials UsedRaw materials used refers to the cost of materials that have…
Q: Can you explain this general accounting question using accurate calculation methods?
A: Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) measures the time…
Q: General accounting
A: To calculate equity, we use the basic accounting equation: Assets = Liabilities + Equity Rearranged…
Q: I am looking for help with this general accounting question using proper accounting standards.
A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is the estimated…
Q: I am searching for the accurate solution to this financial accounting problem with the right…
A: Step 1: Define Capital (Owner's Equity)Capital, also known as Owner's Equity, represents the owner's…
Q: Solve this Accounting problem
A: Explanation of Annual Demand (D):Annual demand refers to the total number of units of a product that…
Q: hy expert provide answer
A: Step 1: Definition of High-Low MethodThe high-low method is a technique used in cost accounting to…
Q: Need help
A: Provided Data:Budgeted overhead = $360,000Budgeted labor hours = 60,000 hoursActual labor hours…
Q: Help this answer with accounting question
A: Step 1: Definition of Absorption CostingAbsorption costing is a method of costing that includes all…
Q: I need help with this financial accounting problem using proper accounting guidelines.
A: Step 1: Definition of Gross MarginGross Margin is a profitability ratio that shows the percentage of…
Q: Compute the variable cost per unit
A: Explanation of Variable Cost per Unit:Variable cost per unit refers to the costs that change in…
Q: what would be the net incremental cost or saving of buying the component ?
A: Step 1: Definition of Outsourcing DecisionWhen a company is considering outsourcing production, it…
Q: How can I solve this financial accounting problem using the appropriate financial process?
A: Step 1: Definition of Owner's EquityOwner's Equity (also known as Shareholders' Equity or…
Q: What is sweet treats lnc's profit percentage for 2023? accounting question
A: Step 1: Definition of Gross Profit PercentageGross profit percentage (also known as gross margin…
Q: What is the equity premium?
A: Step-by-step Solution:We are asked to calculate the Equity Risk Premium using the provided data.…
Q: Accurate answer
A: Explanation of Unadjusted Bank Balance:The unadjusted bank balance is the cash balance shown on the…
Q: Financial accounting
A: Step 1: Definition of Tax LiabilityTax Liability refers to the total amount of taxes a company is…
Q: What is the absorption costing unit product cost?
A: Step 1: Definition of Absorption CostingAbsorption costing (also known as full costing) is a method…
General Accounting
Step by step
Solved in 2 steps
- What is its operating leverage?Boom Company has sales volume of 70,000 units with a unit selling price of $120 per unit. The variable expenses are $80 per unit, and the total fixed expenses are $2,100,000. 15. What is the degree of operating leverage? * 2.00 3.00 4.00 5.00 None of the above 16. If the sales volume increases by 15%, and all other items are the same, what will be the effect on the net operating income? * The net operating income will increase by $420,000 The net operating income will increase by $700,000 The net operating income will increase by $1,120,000 The net operating income will increase by $2,800,000 None of the above O O OThe degree of operating leverage is?