The degree of operating leverage for Adams Inc. is 2. The actual operating income in March is $20,000. If the company expects a 15% decrease in sales in April, what would be the expected operating income in April? Group of answer choices $17,000 $3,000 $6,000 $14,000
Q: Required information [The following information applies to the questions displayed below.) Data for…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Jazz Products has the following information available for the month of March: Sales (4,000 units)…
A: Net income is defined as the difference among revenues and costs. This indicator, together with net…
Q: Target ROI is 17% Invested Capital is $513,941 Full Cost per unit $1,570 Expected sales volume is…
A: Return on Investment is computed by dividing the net profit by the total investment.
Q: Glacier Corporation produces and sells a single product. Data concerning that product appear below:…
A: Net operating income at current situation = Total contribution - Total fixed cost = (5300 units…
Q: The forecasted sales of ABC Retailer Inc. for the first quarter of 2020 is 8,000 units at P100 per…
A: The profit and loss statement shows the operating income earned from the principal business of the…
Q: Required information [The following information applies to the questions displayed below.] Data for…
A: Whenever there is an increase in sales revenue, profit increases upto the extent of contribution…
Q: Sunshine Corporation's contribution format income statement for October is shown below. $228,000…
A: Operating income: It implies to the income generated by a business after subtracting all the direct…
Q: Required information Skip to question [The following information applies to the questions displayed…
A: Fixed cost is the cost that does not change with a change in goods or services production. It is not…
Q: Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price Variable…
A: Here in this question, we are require to calculate the impact on net operating income if…
Q: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 85 100%…
A: Net operating income (NOI) is a formula for calculating the profitability of earnings real estate…
Q: Duncil Company budgets January 2022 Sales at P265,000. The variable cost is expected to be 56% of…
A: Variable costs = sales x variable costs % = 265000*56% = P148,400
Q: A corporation provided the following: Percent Per Unit of Sales $ 240 168 Selling price Variable…
A: Net income, also known as profit or net profit, is the entire amount of revenue or income received…
Q: Adams Inc. determines its expected sales for the next quarter as $800,000 and its margin of safety…
A: The objective of the question is to identify the incorrect statement among the given options related…
Q: Solemn Company has an operating leverage of 2,0. Sales for the current year are $100,000 with a…
A: solution : given : operating leverage =2.0 sales (current year) =$100,000…
Q: The following information relates to Lenard Inc. for the first quarter of 20YY: Data Table…
A: The objective of the question is to determine how the number of break-even units for Lenard Inc.…
Q: Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin…
A: Cost volume profit analysis is the technique used by management for decision making. The methods…
Q: Data for Hermann Corporation are shown below: Per Unit…
A: Number of units proposed to sell = ((2,000 x $90)+ $9,000)/ $90 = 2,100 units
Q: Margin of Safety Yellow Sticker Company's variable expenses are 40% of sales. The company has…
A: Lets understand the basics. Margin of safety is a all the sales over break even point. Formula (For…
Q: Joan believes most locations could generate $ 37,000 in monthly sales. Is franchising a good idea…
A: The objective of the question is to determine if franchising is a good idea for Joan based on the…
Q: Smart company Sold 11,000 softwares during current year For $440,000 , Variable costs are $110,000…
A: The contribution margin is calculated as difference between sales revenue and variable costs.
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: The break-even point is the level of sales where the fixed cost is completely recovered and yields…
Q: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 125…
A: The contribution Margin is calculated as difference between sales and variable cost. The net income…
Q: Matipid Division of Expenditures Company expects the following results for 2019: Unit sales 70,000…
A: Residual income is the income left after paying expenses and costs. Here we are asked to find the…
Q: Graphite Corporation Sale Price per unit is $174 Variable cost is 40% of sales Net Income is…
A:
Q: ABC Co. sells chairs for $90 per unit. The variable expenses are $63 per chair and the fixed costs…
A: Degree of leverage is used to measure the flexibility of increase in the net income due to increase…
Q: The following information applies to the questions displayed below.] Data for Hermann…
A: In order to determine the contribution margin per unit, the variable cost per unit are required to…
Q: The Food division of Garcia Company reports the following for the current year. $ 4,060,000…
A: Profit Margin : the discrepancy between the real cost of purchasing or manufacturing something and…
Q: PROBLEM 5. Austin Company produces a single product. The projected income statement for the coming…
A: Break even point in units = Fixed cost/Contribution margin per unit Variable cost per unit =…
Q: Need explanation Changes in Variable Costs, Fixed Costs, Selling Price, and Volume Data for Hermann…
A: Lets understand the basics. Contribution margin is a margin generated from the sales. Contribution…
Q: Calculate the April 2023 ROI using the following information: April 2023 profit margin 25% April…
A: Ratio analysis s helps to analyze the financial statements of the company. Management can make…
Q: The selling price is $120 per unit. The yariable cost is $78 per unit. Fixed expenses are $249,480…
A: Contribution margin per unit represents the portion of sales revenue that is not consumed by…
Q: Sales (12,500 units \times $30 per unit) $375,000 Variable expenses 225,000 Contribution margin…
A: The income statement is prepared by the management to identify the performance of the business. It…
Q: Hong Kong Ltd has provided the following data for the current fiscal period: Sales 5,000 units…
A: ANSWER - Calculation of Existing Operating Profit : Particulars Amount Sales Price Per Unit…
Q: Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and…
A: Contribution margin ratio = 100% - variable costs as a percentage of sales = 100% - 80% = 20%
Q: Data concerning Runnells Corporation's single product appear below: Per Unit % of Sales Selling…
A: Marginal Costing - Marginal Costing is the method of computing operating profit by bifurcating…
Q: Percent of Per Unit Sales $ 60 Selling price Variable expenses 1008 39 65 Contribution margin $ 21…
A: Under Marginal costing system Operating income = Selling price less variable cost - Fixed cost We…
Q: dcxk produces and sells three products. Last month's results are as follows: P1 P2 P3…
A: For calculating the sale volume for generating the desired profits with different products , we need…
Q: Company has a monthly target operating income of $20,000. Variable expenses are 60% of sales and…
A: Operating leverage factor mean ratio of contribution margin with net income of the business.
Q: Victoria Company reports the following operating results for the month of April. VICTORIA COMPANY…
A:
Q: Required information [The following information applies to the questions, displayed below.]…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: PB&J Eatery has a monthly target operating income of $6,300. Variable expenses are 60% of sales and…
A: Operating leverage = Contribution margin / Operating income where, Contribution margin = Operating…
Q: What are the expected average quarterly costs of running a consulting practice if fixed costs are…
A: For calculate the expected average quarterly costs we need to divide the total annual cost by the No…
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Amber Manufacturing provided the following information for last month: Sales $20,000 Variable costs 6,000 Fixed costs 2,000 Operating income $5,000 If sales double next month, what is the projected operating income? a. $10,000 b. $25,000 c. $19,000 d. $12,000 DesktopAtlas Company has a monthly target operating income of $20,000. Variable expenses are 60% of sales and monthly fixed expenses are $11,400. What is ?John's operating leverage factor at the target level of operating income 1.75 ) 1.57 ) 1.43 O 2.00 1.354 Atlas Company has a monthly target operating income of $20,000. Variable expenses are 60% of sales and monthly fixed expenses are $11,400. What is ?John's operating leverage factor at the targetlevel of operating income 1.75 ) 1.57 () 1.43 ) 2.00 () 1.35 ()
- A company has invested assets of $3,500,000, total sales of 30,000 units and a desired ROI per unit of 20% . What is the ROI per unit? Group of answer choices $233.33 $70. $23.33 $700,000.Required information [The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent of Per Unit Sales 100% $ 125 Selling price Variable expenses 80 64 Contribution margin $ 45 36% Fixed expenses are $85,000 per month and the company is selling 2,700 units per month. Required: 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000, the monthly sales volume increases by 100 units, and the total monthly sales increase by $12,500? (Do not round intermediate calculations.) Net operating income byOxygen Co. has the following forecasted data for 2020 Forecast sales in units 50,000.00 Selling price per unit 80.00 Variable cost per unit 50.00 Fixed Cost: Manufacturing Overhead 600,000.00 Interest Expense 50,000.00 Earnings per share 8.50 1. The break-even point in units is 2.What is the degree of operating leverage at 50,000 units sales level? 3.What is the degree of financial leverage at 50,000 units sales level?
- 7. A company believes that if it spends $30,000 on an advertising campaign for one of its segments, there will be a 20% increment in the segment's sales. The contribution margin for the segment is 60% of sales. Sales for the segment are expected to be $400,000 before the advertising campaign. The relationship of costs to sales is expected to remain the same. The incremental net operating income if the advertising campaign is undertaken is expected to be: a. $48,000 b. $38,000 c. $18,000 d. $ 8,000 e. None of the above. The answer is AnswerMargin of Safety Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $3,750. a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal? $0 in dollars b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal? 0 unitsCurrent Attempt in Progress Blossom Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $210,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase unit selling price by 10% with no change in total variable costs or sales volume. O Net income $ 2. Reduce variable costs to 55% of sales. Net income $ 3. Reduce fixed costs by $18,000. Net income $ Which course of action will produce the highest net income? Bave for Later 100 2 Attempts: 0 of 1 used Submit Answer
- Bramble Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income.Compute the net income to be earned under each alternative.1. Increase selling price by 10% with no change in total variable costs or sales volume. Net income $enter a net income if the selling price is increased by 10% 2. Reduce variable costs to 55% of sales. Net income $enter a net income if the variable costs are reduced to 55% of sales 3. Reduce fixed costs by $18,000. Net income $enter a net income if the fixed costs are reduced by $18,000ces Data for Hermann Corporation are shown below: Selling price Variable expenses Contribution margin Fixed expenses are $72,000 per month and the company is selling 4,200 units per month. Percent Per Unit of Sales $60 100% 39 65 $21 35% Required (see below for a hint if you get stuck): 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600 and the monthly sales volume increases by 100 units? 1-b. Should the advertising budget be increased? Complete this question by entering your answers in the tabs below. Req 1A Req 1B How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000? (Do not round intermediate calculations.) Net operating income byThese following details were supplied by Eigen Manufacturing Corp. over the previous month: Sales $40,000 Variable costs 14,000 Fixed costs 10,000 Operating income $16,000 What is the anticipated operating income if sales drop to 50% in the upcoming month? A. $6,000 B. $15,000 C. $3,000 D. $16,000
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)