The following information is available for the Blue and Red Companies for 2011. Blue Red Sales (200,000 units) $1,800,000 $1,800,000 Variable costs 800,000 1,200,000 Contribution margin 1,000,000 600,000 Fixed costs 500,000 100,000 Net operating income $500,000 $500,000 Compute the operating leverage for each company. Record your answer to one decimal place, if necessary.
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- The CVP income statement shown below are available for ABC Company and DEF Company. ABC Company. DEF Company. Sales revenue Php 600,000 Php 600,000 Variable cost 320,000 120,000 Contribution margin 280,000 480,000 Fixed cost 180,000 380,000 Net income Php 100,000 Php 100,000 Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company, assuming that sales revenue is increases by 10 percent, find out the net income of ABC Company.Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $326,000 $978,000 Variable costs 130,800 586,800 Contribution margin $195,200 $391,200 Fixed costs 134,200 228,200 Income from operations $61,000 $163,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. fill in the blank 1 Bryant Inc. fill in the blank 2 b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $fill in the blank 3 fill in the blank 4 % Bryant Inc. $fill in the blank 5 fill in the blank 6 % 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.The following is Pacific Limited’s contribution format income statement for January 2022: Sales $1,400,000Variable expenses 700,000Contribution margin 700,000Fixed expenses 400,000Net operating income $ 300,000 The company has no beginning or ending inventories and produced and sold 25,000 units during the month. Required (show your calculation): a. The company’s top management team is currently investigating how many units they need to sell to reach the break-even point. Also, they want to know how much revenue they need to generate to reach the break-even point. What do you think? b. If the company aim to generate a profit of $155,000, how many extra units they need to sell beyond the break-even point? c. What is the company’s margin of safety both in dollar and percentage terms? Explain the margin of safety of the company? d.
- Tom Company reports the following data: Sales $600,000 Variable costs 400,000 Fixed costs 100,000 Determine Tom Company's operating leverage. Round your answer to one decimal place.Rongon Company manufactures twotypes of product. Selected information is given below:FantasyJoySelling price per unit$25$150Variable expenses per unit$15$35Number of units sold annually20,0005,000Fixed expenses total $480,800 per year. Required: i.Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the break-even point in dollars for the company as awhole and the margin of safety in both dollars and percent.ii.The company has developed a new product to be called Delight. Assume that the company could sell 10,000 units at $65each. The variable expenses would be $58each. The company’s fixed expenses would not change. a. Prepare another contribution format income statement, including sales of the Samoan Delight (sales of the other two products would not change). b. Compute the company’s new break-even point in dollars and the new margin…Calculate the contribution margin of a product for a service company if revenues are $50,000, variable expenses are $30,000, and fixed expenses are $15,000. a.) $ 20,000 b.) $80,000 c.) $35,000 d.) $5,000
- please solve all parts within 30 minsOperating leverage Haywood Co. reports the following data: Line Item Description Amount Sales $6,160,000 Variable costs (4,620,000) Contribution margin $1,540,000 Fixed costs (440,000) Operating income $1,100,000 Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.provide answer
- What is operating leverage for the info attached? 1.3, 2.7 or 6.7Information concerning Ysabel Lopez Corporation’s Product CUP is as follows: Sales: 300,000Fixed cost: 50,000Variable cost: 150,000 What is the degree of operating leverage? a. 0.67 b. 2.5 c. 1.5 d. 3A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.