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

Bright Degree of Operating Leverage = Contribution Margin / Net Operating IncomeBright Degree of…

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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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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
Considering the reciprocal services method, what are the equations that represent the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $350,000 of direct costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department? (0.30×M) 3nd M-S50000 (0.50 x J) 3=5350.000 + (0.30 × M) and MES5O00+(0,50 xJ) J-(S350.000 × 0.30)+M and M-(S50.000 x050) - J (550.000x0.502)
The Microcrit Division of Siliton Computers produces computer chips that aresold to the Personal Computer Division and to outsiders. Operating data for the Microcrit Division for 2020 are as follows: Internal Sales External Sales Sales: 300,000 chips @ $10 $3,000,000 200,000 chips @ $12 $2,400,000 varibale expense @ $4 $1,200,000 $800,000 contribution margin $1,800,000 $1,600,000 fixed costs (allocated in units) 1,500,000 1,000,000 operating income $300,000 $600,000 The Personal Computer Division has just received an offer from an outsidesupplier to furnish chips at $8.90 each. The manager of Microcrit Division is notwilling to meet the $8.90 price. She argues that it costs her $9.00 to produceand sell each chip. Sales to outside customers are at a maximum of 200,000 Page 6 of 6chips.Required:a. Verify the Microcrit Division's $9.00 unit cost figure.b. Should the Microcrit Division meet the outside price of $8.90? Explain.c. Could the $8.90 price be met…
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,860,000. You have been provided with the following information for the upcoming year: Connections Time on Network (hours) Commercial 51,000 121,000 Retail 61,000 151,000 Consumer 108,000 378,000 What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the time on the network? Multiple Choice $4.40. $3.29. $23.64. $19.36.
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)
Fill in the blanks for each of the following independent cases. E (Click the icon to view the cases.) (For entries with a $0 balance, make sure to enter "0" in the appropriate cell. Round the contribution margin percentage to the nearest whole percent.) Variable Fixed Total Operating Contribution Case Revenues Costs Costs Costs Income Margin Percentage $ 2,800 $ 500 $ 400 $ 900 $ 1,900 82 % a. b. $ 2,900 2$ 400 2$ 1,200 % - X Data Table Contribution Fixed Costs Margin Percentage Variable Total Operating Income Case Revenues Costs Costs Case a. $ 500 $ 900 $ 1,900 Case b. $ 2,900 $ 400 $ 1,200 Case c. 2$ 1,000 $ 600 $ 1,000 Case d. $ 1,800 $ 400 50% Print Done
Use the following information to answer questions 2 through 6: M2). The following information is available. A company has two service departments (S1 and 52) and two manufacturing divisions (M1 and Percent Allocable to $2 20% Costs Incurred Department $1 $200,000 500,000 d. 62.5% $2 50% 2. Using the direct method, what proportion of S1's costs will be allocated to M2! a 20% b. 37.5% C. $295,400 d. $302,500 3. Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250 b. $205,750 c. $308,750 d. $326,450 4. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000 b. $265.700 a. S1-$290,000+ 0.5 × $2 b. S1-$290,000+ 0.2 × S2 c. S1-$290,000+ 0.3 × $2 715473_1&course_id=_31557 M1 M2 expressed? Using the reciprocal method, how should the total service department costs of S1 be E d. S1 - $500,000+ 0.5 × $2 Matching.docx 6. Using the reciprocal method, how much of the service department costs will be…
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Fill in the blanks for each of the following independent cases. (Click the icon to view the cases.) (For entries with a $0 balance, make sure to enter "0" in the appropriate cell. Round the contribution margin percentage to the nearest whole percent.) Variable Fixed Costs Costs Case Revenues a. $ Data table Case 400 Case a. Case b. Case c. Case d. $ 2,900 $ $ $ Total Costs 1,000 $ 1,800 Variable Fixed Total Revenues Costs Costs Costs 600 $ 400 Operating Income 800 Print $ 200 1,400 $ 200 $ Margin Percentage Contribution $ 1,000 600 $ $ Done % Operating Income 1,400 1,300 Contribution Margin Percentage 50% X
Pitta Manufacturing incurred the following expenses during 2020: Fixed manufacturing costs Fixed nonmanufacturing costs Unit selling price Total unit cost Variable manufacturing cost rate Units produced What is the breakeven point in units using absorption costing if the units produced are actually 2,240? (Round your final answer up to the next whole unit.) OA. 709 units $120,000 $90,000 $250 $120 $40 1,370 units B. 1,000 units C. 1,294 units D. 913 units
genow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress-true stom Order ♥ e < eBook costs. Gilroy Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,200. The freight and installation costs for the equipment are $650. If purchased, annual repairs and maintenance are estimated to be $430 per year over the 4-year useful life of the equipment. Alternatively, Gilroy can lease the equipment from a domestic supplier for $1,580 per year for 4 years, with no additional Unit costs: Purchase price Freight and installation Repair and maintenance (4 years) Lease (4 years) Prepare a differential analysis dated December 11 to determine whether Gilroy should Lease Equipment (Alternative 1) or Buy Equipment (Alternative 2). Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner. If an amount is zero, enter "0". For those boxes in which you must enter…
Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable costs 750,000 1,250,000 Contribution margin $500,000 $750,000 Fixed costs 400,000 450,000 Income from operations $100,000 $300,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. 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.

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