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?
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- What are the required sales?financial accountMarcus 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)?
- 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? AnswerA 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. P3,254,680Carter 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?