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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- 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?