I want to correct answer general accounting The following data is provided for Blue Ridge Corporation:⚫ Sales Revenue (2,000 units @ $50) = $100,000. Variable Costs (2,000 units @ $30) = $60,000•Fixed Costs$20,000What is Blue Ridge Corporation's magnitude of operating leverage?a. 1.50b. 2.00c. 2.50d. 3.50

To calculate the magnitude of operating leverage (MOL), use the following formula: MOL =…

Answered: The following data is provided for Blue…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is the operating leverage?
Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00 Variable Costs = 75% of Sales Operating Income = $40,000.00 Group of answer choices a. 0 b. 7.500 c. 1.875 d. 1.333
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Operating Leverage Income statements for two different companies in the same industry are as follows: Trimax, Inc. Quintex, Inc. $400,000 $562,500 200,000 112,500 $200,000 $450,000 150,000 400,000 $50,000 $50,000 Sales Less: Variable costs Contribution margin Less: Fixed costs Operating income Required: 1. Compute the degree of operating leverage for each company. Trimax Quintex 2. Compute the break-even point in dollars for each company. Trimax, Inc. Quintex, Inc. Why is the break-even point for Quintex, Inc., higher? 3. Suppose that both companies experience a 40 percent increase in revenues. Compute the percentage change in profits for each company, Trimax Quintex
please solve for A1 and B
Accounting provide a. b calculation
Frontier Corp. has a contribution margin of $1,682,000 and profit of $336,400. What is its degree of operating leverage? Multiple Choice 0.20 5.80 14.50 5.00
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $295,300 $834,000 Variable costs 118,500 500,400 Contribution margin $176,800 $333,600 Fixed costs 124,800 194,600 Income from operations $52,000 $139,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ % c. The difference in the of income from operations is due to the difference in the operating leverages. Beck Inc.'s operating leverage means that its fixed costs are a percentage of contribution margin than are Bryant Inc.'s.

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The following data is provided for Blue Ridge Corporation: ⚫ Sales Revenue (2,000 units @ $50) = $100,000 . Variable Costs (2,000 units @ $30) = $60,000 • Fixed Costs $20,000 What is Blue Ridge Corporation's magnitude of operating leverage? a. 1.50 b. 2.00 c. 2.50 d. 3.50