Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution margin 300,000 Less fixed cost 240,000 Net income 60,000 What is the operating leverage of the company? O none of the above O 2 O 5 O 4 3.
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- If the sales of business x are $ 150.000 , variable cost is $ 45.000 , fixed cost is $ 15.000 and EBIT is $ 30.000 , what is the operating leverage of this business ? a.5 b.4 c.3 d.4,5 e.3,5Sales Variable costs Contribution margin Fixed costs Net et income $401,000 (a1) 329,000 72,000 22,000 $50,000 $401,000 X Your answer is incorrect. 157,000 244,000 194,000 The investment banker is interested in acquiring one of these companies. However, she is concerned about the impact that each company's cost structure might have on its profitability. $50,000 Calculate each company's degree of operating leverage. (Round answers to 2 decimal places, e.g. 1.15.)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.
- Q1. Sales (30,000 units) Tk.15,00,000 Tk.50 Variable Expense 12,00,000 40 Contribution Margin 300,000 Tk. 10 Fixed Expenses 220,000 Net Operating Income 80,000 Refer to original data. Compute company’s margin of safety in both dollar and percentage form. Compute company’s degree of operating leverage at present level of sales. 7. If sales increase by 7.5%, by what percentage would you expect net operating income to increase?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. 1.333Company XYZ has total fixed costs of $5,000. Assume a selling price per unit of $8 and total variable cost per unit of $4, what is the breakeven point in ($) value? Select one: O a. 40,000 O b. None of the given answers O c. 1,250 O d. 10,000 O e. 20,000
- The following data are available for X Company:• Ave Selling price of 16 per unit• Variable cost per unit of 11• Units sold is 200,000• Fixed cost is 800,000• Interest expense is 50,000What is the DFL (Degree of Financial Leverage)? • 2.50 times • 2.33 times • 5 times • 1.33 timesAssume the following cost information for Standard Corporation: Selling price per unit Variable costs per unit Total fixed costs $45.00 $25.00 $100,000.00 of stion If Standard's fixed costs increased by 10% and management wanted to maintain the original breakeven point, then the selling price per unit would have to be increasedIto: O a. $49.50 O b. $47.00 O C. $65.00 O d. $48.50Company XYZ is producing and selling 2,500 . At this level , the selling price per unit is $10, the variable expenses per unit is $3 and fixed expenses are \$1,5 . How much is the profit ? a. $ 6,000 b. $11,000 c. 8,500 d. 16,000 e.13,500
- Company XYZ has total fixed costs of $9,000. Assume a selling price per unit of $40 and total variable cost per unit of $30, what is the breakeven point in ($) value? Select one: O a. None of the given answers O b. 900 Oc 360,000 O d. 36,000 O e. 90,000Use the following information to answer the questions. Company X $ 12,480,000 $ 3,120,000 561,600 8.00% Company Y $ 28,480,000 $ 7,120,000 2$ Company Z $ 20,480,000 $ 5,120,000 532,480 Sales Average operating assets Net operating income Minimum required rate of return $ 512,640 8.50% 10.40% Required: 1. Compute the return on investment (ROI) for each company using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each company. 3. Each company is presented with an investment opportunity that would yield a 9% rate of return. a. Assume performance is measured based on ROI. Indicate whether each company will likely accept or reject the investment opportunity. b. Assume performance is measured based on residual income. Indicate whether each company will likely accept or reject the investment opportunity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req ЗA Req 3B Each company is presented with an investment…Summarized data for Ralph Corporation: Selling price Variable expenses $ 200 per unit $ 150 per unit $ 1,000,000 per year 25,000 per year Fixed expenses Unit sales Knowledge Check 01 What is Ralph Corporation's margin of safety in dollars? $4 million $5 million O $1 million $2.2 million Knowledge Check 02 What is Ralph Corporation's margin of safety in percentage? O 20% O 100% 80% O 50%