The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 2.5 percent, the operating cash flow increases by 5.3 percent. What is the degree of operating leverage if the contribution margin per unit is $47? - 2.10 -.57 -2.12 -.47 - 1.75

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 2.5 percent, the operating cash flow increases by 5.3 percent. What is the degree of operating leverage if the contribution margin per unit is $47? - 2.10 -.57 -2.12 -.47 - 1.75

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

See similar textbooks

Related questions

Q: ACME company's financial account details

A: the amount at which the widgets will be reported on the balance sheet under the lower of cost or…

Q: Financial accounting

A: Step 1: Define Bonds PayableThe financial obligation of the issuer toward the bondholders for the…

Q: Lone star has computed the following unit costs solution this question

A: Step 1: Define Variable CostingThe variable costing income statement only considers the variable…

Q: Need help with this general accounting question

A: Step 1: Define High-Low MethodIn accounting, the high-low method is used to bifurcate the total…

Q: Record the amount

A: Explanation of Basic Rate: Basic rate is the standard or predetermined cost assigned to materials or…

Q: following is account subject query please solve it

A: Explanation: As per LCNRV (Lower of Cost or Net Realizable Value) rule, inventory is valued at cost…

Q: Please provide the Transfer Pricing Schedule/Policy under the Optimum Transfer Pricing Method for…

A: 1] Opportunity CostThe variable cost + opportunity cost is usually the transfer price under the best…

Q: Need answer the accounting question please answer do fast

A: Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Q: Solve this step by step

A: Step 1: List all the given:Beginning Count: 250Purchased: 300Sold: 420Physical Count: 115 Step 2:…

Q: Question: Consider the following information: direct materials used totaled $124,700; direct labor…

A: Explanation: Cost of goods manufactured can be calculated using the following formula:Cost of goods…

Q: I want to correct answer accounting

A: Step 1: Define Manufacturing OverheadsManufacturing overhead cost is also known as an indirect cost.…

Q: Tell me answer tutor

A: Explanation of Dynamic Cost Analysis:Dynamic cost analysis refers to a flexible accounting method…

Q: A driver started a business please rihgt answer

A: Step 1: Total License Cost = $6-month Expense=666.67×6=4,0006,000 Step 2: Useful Life = 24 months (2…

Q: A stock has a stock price of $40 and earnings per share this question solution

A: To calculate the PEG ratio, we use the following formula:PEG Ratio=Earnings Growth RateP/E Ratio…

Q: Hi Give proper answer

A: Computation of gross profit by deducting the cost of goods sold from the net sales. For this, let's…

Q: Beckinsale inc has a profit margin firm roa solve this question

A: Step 1: Define Return on AssetReturn on asset is a measure of the profitability with the comparison…

Q: World company expert to operate at 70% of its productive capacity solve this question

A: Step 1: Define Pre-determined standard overhead rateA predetermined standard overhead rate is a…

Q: Question: MOH cost A company's manufacturing overhead includes $7.10 per machine hour for variable…

A: Hello student! Predetermined Overhead Rate is a rate used primarily to allocate the total…

Q: D. Star Company purchases Stripe Inc. for $13,985,000 cash on January 1, 2024. The book value of…

A: D. Goodwill Calculation for Star Company:Goodwill is calculated as the excess of the purchase price…

Q: The haskin company manufacturers accounting questions solution

A: Step 1: Define Cost-Volume-Profit AnalysisThe examination of variation between costs of production…

Q: Spruce company uses a job costing system give me answer

A: Step 1: Define Allocation of Manufacturing OverheadManufacturing overhead is an indirect production…

Q: Which method measures depreciation directly? Oa. Sales comparison Ob. Cash equivalency O c. Age-life…

A: Depreciation is the systematic allocation of the cost of a tangible or physical asset over its…

Q: Which ROE IS GREATER?

A: Explanation: To find the firm with the greater Return on Equity (ROE), we need to calculate ROE for…

Q: Please provide correct answer accounting question

A: Step 1: Define Average Operating AssetsOperating assets refer to those assets that a company's…

Q: General Accounting

A: Hello student! Accounts Receivable Turnover indicates the collection efficiency of the business for…

Q: Vigeland Company completed the following transactions during Year 1. Vigeland’s fiscal year ends on…

A: January 15The purchase of merchandise is recorded as a debit to Inventory and credit to Cash for the…

Q: Show me answer

A: Key Definitions:Accounting Accuracy: The degree of precision and correctness in recording,…

Q: Strand company is planning to sell 400 buckets solution this question

A: Step 1: Define Direct LaborWorkers or employees directly involved in manufacturing goods and…

Q: Need solution

Q: please provide answer accounting question

A: Step 1: Define Return on AssetA company uses assets to generate revenue. Return on asset is an…

Q: Need help with this question solution general accounting

A: Step 1: Define Direct MaterialsDirect materials pertain to the supplies and materials directly used…

Q: The refining department of sweet sugar solution this question

A: Step 1: Define WIP InventoryWork-in-progress (WIP) is a production and supply-chain management word…

Q: If you give me wrong answer I will give you unhelpful rate on these general accounting question

A: Step 1: Define Business assetA business asset is an item of resources, machinery, or vehicles bought…

Q: What is the profitability index for an investment solve this question

A: Step 1: Given Value for Calculation Required Rate of Return = r = 6%Cash Flow for Year 0 = cf0 =…

Q: Presented below is information related to plant assets, natural resources, and intangibles at year…

A: Step 1:Balance sheet is the statement prepared at last which shows that total assets are equal to…

Q: Lee's pension trust reported the following events on its statement of changes in net assets for the…

A: Approach to solving the question: Actual Return = Interest Revenue + Dividend Revenue + Realized…

Q: Please given answer accounting question

A: Step 1: Define The Contribution MarginThe contribution margin is found by subtracting the variable…

Q: Detailed answer

A: Explanation of Accounting Estimates: Accounting estimates are quantitative determinations requiring…

Q: follow this questions and give proper answer with short details

A: To calculate gross profit using the FIFO (First-In, First-Out) method, we need to follow these…

Q: Solve these general accounting question not use ai

A: Step 1: Define Accrual BasisAs per the accrual basis of accounting, revenue should be recognized…

Q: Need help with this financial accounting question

A: Step 1: Define Price-Earnings RatioThe P/E is also called earnings multiple. There are two types of…

Q: Develop TWO audit procedures to gather sufficient and appropriate testing for Operating expenses,…

A: The first procedure involves the examination of invoices, receipts, and other documents related to…

Q: A company has a dividend payout ratio solve this question

A: Step 1: Calculate the Dividend Discount Model (DDM)The formula for the price of a stock based on…

Q: Cullumber lakes park

A: Step 1: Define Income StatementAs one of the year-end financial reports, the income statement shows…

Q: Please give me answer general accounting

A: Initial Investment: -21,000Discount Rate: 9% Present Value of Future Cash Flows:Year 1: 7,100 / (1…

Q: please solve given general accounting problems

A: Step 1: Introduction to inventory valuationInventory valuation is referred to as that method which…

Q: ANSWER

A: Explanation: In the given case, we are required to find out which firm has a greater Return on…

Q: Provide correct solution for this general accounting question

A: Step 1: Define DepreciationIn a business, a purchase cost of a fixed asset can be recovered during a…

Q: Farma's Llamas has a weighted average cost capital need help this question

A: The problem requires the determination of the debt-equity ratio. The debt-to-equity (D/E) ratio is a…

Q: Adirana corporation manufacturers football equipment please give me answer accounting

A: Step 1: Define High-low MethodOne of the methods to segregate mixed costs is the high-low method, in…

Question

Do fast and step by step calculation with explanation for these accounting question Do not use Ai

The accounting manager of Gateway Inns has noted that every time the
inn's average occupancy rate increases by 2.5 percent, the operating
cash flow increases by 5.3 percent. What is the degree of operating
leverage if the contribution margin per unit is $47?
- 2.10
-.57
-2.12
-.47
- 1.75

Definition Definition Structural system an enterprise uses to collect, store, report, retrieve, and process financial data. Accounting information systems are used by business analysts, auditors, accountants, and consultants for accurate and efficient access to financial data.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) Part A: What is the residual income? Part B: Show calcualtions on how you got answer
Brightwood furniture provide the following data
General accounting
D8. Account
How much would you expect quarterly net operating income to increase?
I Need Answer
Give me answer general accounting
Please help
Calculate the return on investment (as a %) for the given company. (Round your answer to the nearest tenth of a percent.)
Consider a telecommunication service provider. You have the following quarterly data: STATISTICS TYPICAL CONSUMER Number of referrals per period (n=n1+ n2) 5 of which, customers that joined due to the referral (n1) 3 of which, customers that would have joined anyway (n2) 2 Marketing cost per period (Mty) $30 Average gross margin (Aty) $78 Cost of referral (aty) $15 Acquisition cost savings (ACQ1ty and ACQ2ty) $10 Yearly discount rate (r) 15% Calculate CRV of a typical customer for one year (over 4 quarters).
Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) What is the profit margin? What is the investment turnover? What is the return on investment?
= Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Hint: The contribution margin ratio= 100% - Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. = Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) The margin of safety is Requirement 2. Express Adam's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Adam's operating leverage factor at the target level of operating income? Begin by identifying the…