Variable costs:900000, fixed cost:600000 The following information is available for the Bright and RavenCompanies for 2023.Bright RavenSales (200,000 units) $2,100,000 $2,000,000Variable costs900,0001,400,000Contribution margin 1,200,000600,000Fixed costs600,000150,000$450,000Net operating income $600,000Compute the operating leverage for each company.Record your answer to one decimal place, if necessary.

Explanation of Sales: Sales represents the total revenue generated by each company from selling…

Answered: The following information is available…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external_browser=D0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghm Assume the following (1) contribution margin = $150,0000 (2) net operating income $15,000, and (3) sales increase by 14%. Given these three assumptions, net operating income will increase by: Multiple Choice 15 1%. 14%. 116. 140%. < Prev 15 of 50 Next 2 Search for anything
The Apollo Delivery Service has the following information about its truck fleet miles and operating costs Year 2018 2019 2020 Miles 500,000 600,000 700,000 Operating Costs $320,000 $370,000 $420,000 What is the best estimate of fixed costs for fleet operating expenses using the high-low method? $100,000 $370,000 $70,000 $200,000
(c) Clyne Industries Company wants to market its new Slammin Jammin Basketball GoalSet. To bring this product to the market will require the purchase of equipment costingSh.650,000. Shipping and installation expenses associated with the equipment are estimatedto be Sh.50,000. In addition, Clyne will incur incremental employee training and recruitingexpenses of Sh.100,000, all of which will be incurred at time 0. Additional net workingcapital investments of Sh.50,000 will be required at time 0, Sh.25,000 in year 1, andSh.10,000 in year 2. Revenues are expected to be Sh.250,000 in year 1 and grow at a rate ofSh.25,000 per year through year 5, then decline by Sh.25,000 per year until the project isterminated at the end of year 10. Annual operating expenses are expected to be Sh.80,000 inyear 1 and to grow at a rate of Sh.10,000 per year until the end of the project life.Depreciation will be for a 5-year period for tax purposes. The salvage value of the equipmentat the end of 10 years is…
31) Beta has three products, A, B, and C. The following information is available: C $24,000 9,000 Product A Product B $18,000 $90,000 Variable costs 36,000 48,000 15,000 Contribution margin 24,000 42,000 Sales $60,000 Fixed costs: Avoidable 6,000 Unavoidable 7,000 Product Operating income $ (400) 15,000 4,000 9,000 5.400 $ 11,000 Beta is thinking of dropping Product C because it is reporting a loss. Assuming it drops Product C and does NOT replace it, what will be the effect on operating income? (please list dollar value and the direction of the change in operating income)
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AIF Inc. has been monitoring several activity costs for the prior three years to track the trending of costs from 2021 through 2022, and 2023. The table provides insight: ACTIVITY Instructing Mentoring Consulting YE 2021 YE 2022 YE 2023 $487,000 $530,200 $460,000 $653,000 $659,200 $672,000 $1,345,200 $1,290,000 $1,200,000 In analyzing the costs based on trend analysis, AIF Inc would conclude which of the following correctly? Check all that apply. Instructing in 2023 had a 5.54% decrease. Mentoring in 2023 had a 13.24% decrease. Consulting in 2022 decreased by $90,000 Mentoring costs in 2023 increased by 2.91% Check here if none of the items are correct.
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
The following data is available for Wheels ‘N Spokes Repair Shop for 2022: Repair technicians’ wages $360,000 Fringe benefits 80,000 Overhead 60,000 Total $500,000 The desired profit margin is $40 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5,000 labor hours will be worked in 2022. Wheels ‘N Spokes’ labor charge per hour in 2022would be Group of answer choices $112. $140. $100. $128.
please show the steps to calculate the DOL, DFL and DCL. please write out the steps
Use this information to determine the number of units
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

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