The degree of operating leverage (DOL) for Neptune Inc. and Ardent Ltd. are 2.3 and 4.9, respectively. Both companies have net incomes of $62,450. Determine their contribution margins. respective
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- The degrees of operating leverage for Pharoah Corp. and Sheridan Co. are 1.85 and 5.85, respectively. Both have operating incomes of $57,200. Determine their respective contribution margins. Pharoah Corp $ Sheridan Co. LA Contribution marginsDetermine theri respective contribution margin?Contribution margin
- please solve for A1 and BThe following CVP income statements are available for Wildhorse Corp. and Blossom, Inc. Wildhorse Corp. Blossom, Inc. Sales revenue $854,000 $854,000 * Variable costs 396,500 228,750 Contribution margin 457,500 625,250 Fixed costs 305,000 472,750 Net income $152,500 $152,500 (a) Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 15.5.) Degree of Operating Leverage Wildhorse BlossomThe single-column CVP income statements shown below are available for Wildhorse Company and Blossom Company, Sales Variable costs Contribution margin Fixed costs Net income Wildhorse Wildhorse Co. Blossom $495,000 239,000 256,000 1000 156,000 $100,000 Blossom Co. Degree of Operating Leverage $495,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) $ 51,000 444,000 344,000 $100,000 (b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-plumn CVP income statement for each company. Wildhorse Company $ tA $ Blossom Company
- The following income statement is provided for Vargas, Inc. What is this company's magnitude of operating leverage? Assume that net income is equal to operating income.If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)Parker Company has provided the following data for the most recent year: net operating income, $33,000; fixed expense, $94,200; sales, $212,000; and CM ratio, 60%. What is the company's degree of operating leverage? A. 3.85 B. 1.35 C. 0.26 D. 0.60