Amrita patíYou are attempting question 4 out of 12The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, andprice per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage.DOL is 0.57DOL is 2.57a.b.с.DOL is 2.93d.DOL is 3.93AnswerO ABODSubmit.21:3228°C Mostly cloudyA DG 6 40) ENG03-09-202199

The degree of operating leverage shows the change in the operating income due to the change in…

Answered: The firm has accounting breakeven in…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a. If Canace Company, with a break-even point at $281,400 of sales, has actual sales of $420,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. b. If the margin of safety for Canace Company was 30%, fixed costs were $1,243,200, and variable costs were 70% of sales, what was the amount of actual sales (dollars)?(Hint: Determine the break-even in sales dollars first.)
KI Your answer is incorrect. Try again. Sheridan Company has sales of $2200000, variable costs of $1200000, and fixed costs of $800000. Sheridan's degree of operating leverage is 1.25 0.83 5.00 0.78
Breakeven point-Algebraic and graphical Fine Leather Enterprises sells its single product for $128.88 per unit. The firm's fixed operating costs are $472,200 annually, and its variable operating costs are $86.54 per unit. a. Find the firm's operating breakeven point in units. b. Label the x axis "Sales (units)" and the y axis "Costs/Revenues ($)," and then graph the firm's sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating breakeven point and the areas of loss and profit (EBIT). a. The operating breakeven point is units. (Round to the nearest integer.)
Benovan Co. reports the following data: Sales (@ unit selling price of P20) Less Variable Costs Contribution Margin Less Fixed Costs Operating Profit P 840,000 546.000 P 294,000 168.000 P 126,000 Rased on the above data, the following were determined by an accounting staff: ======== Sales Breakeven Sales in Breakeven Sales in units Volume UVC VC% UCM CM% DOL pesos The manager consulted you regarding the effects of the following changes on the company's breakeven sales in units, breakeven sales in pesos, Degree of Operating Leverage (DOL) and Operating Profit. Assuming all other factors remain the same, the following independent proposals were made: 1. Increase the sales volume by 25% New Sales Volume New BES in units New BES in Pesos New Operating Profit New DOL 2. Increase the fixed costs by 10% New DOL New Operating Profit New BES in Pesos New BES in units 3. Increase the unit variable costs to P14 New Operating Profit New DOL New BES in Pesos New BES in units Based on the three…
Wham Company sells electronic squirrel repellants. The following data are given: Unit selling price $55.00 Variable costs ratio (Variable costs as a % of selling price) 39.00% Total fixed costs $45,000 Number of units sold 2,500 What is the magnitude of operating leverage? Round your answer to two digits. A. 2.16 B. 1.64 C. 0.46 D. 1.38 E. 3.54
ratios for Jtly. 2. From the following figures calculate a. P/V Ratio b. Break Even Point c. Sales to earn a profit of Rs. 1,20,000 Sales = 6,00,000 Variable Cost 3,75,000 Fixed Cost = 180,000 3. Describe how Management Control System is the means to analyses and control the
a. If Canace Company, with a break-even point at $244,200 of sales, has actual sales of $370,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 40%, fixed costs were $1,627,200, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) %24
Lara Sdn. Bhd. has a variable cost ratio of 0.56. The fixed cost is RM103,840 and23,600 units are sold at break-even. Estimate the selling price, variable cost per unit andcontribution margin per unit.
5. Calculate the ratio of variable-costs-to-sales for a firm with RM1,500,000 break-even revenues and RM400,000 fixed costs.
Ulpik Inc. has variable operation costs of $10 per unit, a selling price of $75,50 per unit and fixed operating costs of $250,000. a) Calculate the operating breakeven point in units. b) Calculate the firm's EBIT at a level of units sold of 24,000; 28,000; and 30,000 units respectively. c) With 28,000 units as a base, what are the percentage changes in units sold and EBIT, as sales move from the base to the other levels used in part b)? d) Use the percentages computed in part c) to determine the degree of operating leverage (DOL).
b) Tara Company produces a single product. The projected income statement for the coming year is as follows: RM1,800,000 Sales (40,000 units @ RM45) Total variable cost 1,044,000 Contribution margin RM 756,000 Total fixed cost 733,320 Operating income RM 22,680 (Note: Round all RM value answers to the nearest dollar. Round contribution margin ratio and degree of operating leverage to two decimal places.) Required: i. Solve the break-even sales value (RM). ii. Solve the margin of safety in sales value (RM). iii. Solve the degree of operating leverage.
Tom Company reports the following data: Sales Variable costs Fixed costs Determine Tom Company's operating leverage. Round your answer to one decimal place. $156,332 81,532 30,800

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The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, and price per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage. a. DOL is 0.57 b. DOL is 2.57 с. DOL is 2.93 d. DOL is 3.93