Sterling Corporation sells a single product. Its annual revenue is $900,000, and profit is $40,000. Fixed costs amount to $210,000. What is its operating leverage?
Q: Accounting 3.5
A: Concept of Reported Worked HoursThe reported worked hours refer to the number of hours an employee…
Q: Financial Accounting
A: Step 1: Definition of Allowance for Doubtful AccountsThe Allowance for Doubtful Accounts is a…
Q: Need help this question
A: Step 1: Definition of Total Production Engineering Cost Per UnitThe total production engineering…
Q: I need correct answer general accounting question
A: Step 1: Define Price-Earnings (P/E) RatioThe Price-Earnings (P/E) Ratio measures how much investors…
Q: A machine costing $77,500 with a 5-year life and $4,700 residual value was purchased January 2.…
A: We are given the following details:Cost of machine = $77,500Useful life = 5 yearsResidual (salvage)…
Q: i need correct answer of this question general accounting
A: Step 1: Define Corporate Tax RatesAverage Tax Rate is the total tax paid divided by taxable…
Q: HELP
A: The predetermined overhead allocation rate is an estimated rate used to apply factory overhead to…
Q: what is the standard quantity of per muffin?
A: To determine the standard quantity of flour per muffin, we need to add up all the required…
Q: Question
A: Concept of Period CostsPeriod costs are expenses that are not directly tied to the production of…
Q: Louisa Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing…
A: Calculation of Total Units to Account ForTotal Units = Beginning WIP + Transferred-in = 1,025 +…
Q: Do fast answer of this accounting questions
A: Calculation of Material Price VarianceMaterials Price Variance = (Standard Price - Actual Price) ×…
Q: General accounting
A: Step 1: DefinitionProfit Margin measures how much of each dollar in sales translates into net…
Q: ht = ences X On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner…
A: Step 1: Identify the Relevant InformationAn income statement only includes revenues and…
Q: What is the payable deferral period on these financial accounting question?
A: Step 1: Definition of Payable Deferral PeriodThe payable deferral period, also known as the Days…
Q: If you give me wrong answer this financial accounting question I will give you unhelpful rate
A: Step 1: Define Accumulated DepreciationAccumulated Depreciation is the total amount of depreciation…
Q: 1. Provide a brief history of the tax system in Jamaica, highlighting the different types of taxes…
A: 1. Brief History of the Tax System in JamaicaThe Jamaican taxation system has, since 1962 when the…
Q: Calculate accounts receivable balance
A: Calculation of Bad Debt Expense for 2016Ending Allowance = Beginning Allowance + Bad Debt Expense −…
Q: Provide correct answer this financial accounting question
A: Step 1: Definition of Gross ProfitGross Profit is the difference between a company's net sales…
Q: please provide correct answer
A: Step 1: Definition of Accounts Receivable Turnover RatioThe Accounts Receivable Turnover ratio…
Q: Assume that TDW Corporation (calendar-year-end) has 2024 taxable income of $952,000 for purposes of…
A:
Q: What is the amount of cash Anderson would receive from the sale?
A: Given:Face Value of Bonds = $2,000,000Issue Price = 102% of face valueFormula:Cash Received=Issue…
Q: I want to correct answer general accounting question
A: Step 1: Definition of Taxable Income Taxable income is calculated by adjusting the operating income…
Q: The Foster Manufacturing Company's production costs for August are: please answer the accounting…
A: Step 1: Define Factory OverheadFactory Overhead (also known as Manufacturing Overhead) includes all…
Q: What is the budgeted cost of direct materials to be used this year on financial Accounting?
A: To calculate the budgeted cost of direct materials to be used, follow these steps: Determine the…
Q: Hello tutor please provide answer general accounting question
A: Step 1: Define Adjusting Entries for Supplies UsedAn adjusting entry for supplies is required to…
Q: Financial answer
A: Step 1: Given Value for Calculation Required Rate of Return = r = 8.2% Step 2: Calculation of Price…
Q: Provide correct accounting question
A: Step 1: Definition of Capital Gains and Taxable IncomeCapital GainsCapital gains refer to the profit…
Q: MCQ
A: The total manufacturing cost is the sum of all the expenses incurred by a company while…
Q: Summit Holdings has $280,000 in accounts receivable that will be collected within 70 days. The…
A: Skyline Factoring Company's rate of return (ROR) can be calculated using the simple interest formula…
Q: Solution need
A: 1. Contribution Margin per Machine HourSelling Price per Unit = $55.00Variable Cost per Unit =…
Q: On January 1, 2015, a new business was started with an initial investment of $12,000 in cash and…
A: Explanation of Owner's Equity:Owner's Equity represents the owner's claim on the business assets…
Q: Charlotte's Cleaning Services began the year with total liabilities of $120,000 and stockholders'…
A: To determine the total assets at the end of the year, we use the accounting equation:…
Q: I need answer this financial accounting question
A: Step 1: Define ROA and ROEReturn on Assets (ROA): ROA measures how efficiently a company uses its…
Q: General accounting
A: Step 1: Define Gain or Loss on Disposal of a Fixed AssetA gain or loss on disposal of a fixed asset…
Q: help me to solve this question
A: Step 1: Definition of Units of Activity MethodExplanation: The units of activity method calculates…
Q: Provide correct option
A: Step 1: Definition of Departmental Expense AllocationDepartmental expense allocation is the process…
Q: Please see an attachment for details general accounting question
A: Step 1: Define Stockholders' EquityStockholders' equity represents the residual interest in the…
Q: What is the number of units transferred?
A: To determine the number of units transferred to finished goods, we use the following formula: Units…
Q: Provide solution please
A: Introduction:The asset turnover ratio is a significant financial factor applied to determine the…
Q: At the high level of activity in November, 10,300 machine hours were run and power costs were…
A: Step 1: DefinitionsConcept of the High-Low MethodThe High-Low Method is a technique used to estimate…
Q: Financial Accounting
A: Loss to Shareholders from the Exercise of Stock OptionsGiven Information:Shares issued on the…
Q: help
A: Explanation of Deferred Tax Liability CalculationDeferred tax liability arises when taxable income…
Q: answer ? general accounting question
A: Step 1: Define Lower-of-Cost-or-Net Realizable Value (LCNRV)The Lower-of-Cost-or-Net Realizable…
Q: Please Solve Question
A: The Times Interest Earned (TIE) ratio is a measure of a firm's ability to meet its interest…
Q: What would be the effect on income from operations if absorption costing is used?
A: Explanation of Absorption Costing: Absorption costing is a product costing method that assigns all…
Q: Assets Current Assets Cash Credit card receivables Accounts receivable Marketable securities Food…
A: 1. Working Capital for Years 2018 and 2019Working Capital=Total Current Assets−Total Current…
Q: Solve now
A:
Q: Swifty Corporation's trial balance reported the following normal balances at the end of its first…
A: In accounting, a trial balance is a worksheet that lists all the accounts for a business, along with…
Q: What is the total period cost?
A: Step 1: DefinitionsConcept of Period Costs - Period costs are expenses that are not directly tied to…
Q: Tutor help this question. General accounting
A: Step 1: Definition of Gross ProfitGross profit is the difference between a company's total revenue…
what is its operating leverage accounting question
Step by step
Solved in 2 steps
- Marcus Corporation currently sells 150,000 units of products a year at a price of RM 4.00 per unit. Its variable costs are approximately 30 % of sales, and its fixed costs amount to 50% of revenues at its current output level. Although fixed costs are based on revenues at the current output level, the cost is fixed. What is Marcus' degree of operating leverage in sales (RM)?A certain firm has the capacity to produce 650,000 units of product per year. At present, it is operating at 62% capacity. The firm’s annual income is P4,160,000.00. Annual fixed costs are P1,920,000.00 and the variable costs are equal to P3.56 per unit of product. What volume of sales does the firm breakeven?A. P3,354,680 B. P3,534,880 C. P3,155,690 D. P3,254,680Callie Corporation’s products sell for $180 each. The variable cost of each product is $135, and fixed operating costs are $371,250. Callie pays $61,875 interest on its outstanding debt each year, and its marginal tax rate is 40 percent. If Callie expects to sell 11,000 units, what is its degree of operating leverage (DOL), its degree of financial leverage (DFL), and its degree of total leverage (DTL)? The firm has no preferred stock.
- Majestic Collectibles can produce keepsakes that will be sold for $75 each. Non-depreciation fixed costs are $1,200 per year, and variable costs are $55 per unit. What is the degree of operating leverage of Majestic Collectibles when sales are $8,250?LPM Corporation sells its product for $10 each. Fixed operating costs equal $100,000, and variable operating costs are 75 percent of the selling price. The firm pays $37,500 in interest, and its marginal tax rate is 35 percent. (a) What are LPM’s operating breakeven point and financial breakeven point? (b) If LPM expects to sell 65,000 units, what are its degree of operating leverage (DOL), degree of financial leverage (DFL), and degree of total leverage (DTL)? The firm has no preferred stockMaverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $543,418 and its variable costs equal 60% of sales. The company’s interest expense is $500,000. What is the company’s degree of total leverage (DTL)?
- ??Majestic Collectibles can produce keepsakes that will be sold for $75 each. Non-depreciation fixed costs are $1,200 per year, and variable costs are $55 per unit. What is the degree of operating leverage of Majestic Collectibles when sales are $8,250? Accurate answerQuestion: Carter Corporation has fixed costs of $1,800,000, and variable costs are 45% of sales. What are the required sales if Carter Corporation desires a net income of $200,000?