The following information relates to Paterno Company: Sales revenue $10,000,000Contribution margin 4,000,000Net income 1,000,000If a manager at Paterno desired to determine the percentage impact on net income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: A) 0.25. B) 0.40. C) 2.50. D) 4.00. E) 10.00.

The following information relates to Paterno Company: Sales revenue $10,000,000Contribution margin 4,000,000Net income 1,000,000If a manager at Paterno desired to determine the percentage impact on net income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: A) 0.25. B) 0.40. C) 2.50. D) 4.00. E) 10.00.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

See similar textbooks

Similar questions

Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment.
The following information relates to Paterno Company: If a manager at Paterno desired to determine the percentage impact on net income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: Sales revenue 10,000,000 Contribution margin 4,000,000 Net income 1,000,000
please dont provide answer in image format thank you
ROI and Margin Arbus Company provided the following information: Turnover 1.3 Operating assets $106,000 Operating income 6,620 Required: 1. What is ROI? (Round your answer to three decimals.) 0.062 ✓ 2. What is margin? (Round your answer to two decimals.) X Feedback
practice please help with formula
Perform a vertical analysis...
Accelerated Logistics provides the following information: $1,600,000 $15,000,000 $1,800,000 Operating income Net sales Average total assets Management's target rate of return 25% What is the company's profit margin ratio? (Round your answer to two decimal places.) ..... A. 12.00% B. 88.89% C. 27.90% D. 10.67%
Provide the missing data in the following tabulation: Division Alpha Bravo Charlie Revenue 11500000 Operating profit 920000 210000 Average operating assets 800000 Margin 4,00% 7,00% Turnover 5 Return on investment (ROI) 20% 14%
How much is the Alpha Unit segment controllable margin?
Assume a company reported the following results: Sales $ 400,e00 Variable expenses Contribution margin Fixed expenses 260,e00 140,000 96,e00 Net operating income $ 44,000 Average operating assets $ 350, 000 The margin is closest to: Muitiple Choice 12.9%. 35.0%. 114.3%.
XY Company provided you the following data: Average operating assets 120,000 Margin on sales 15% Minimum required rate of return 20% Return on investment 25% Sales 300,000 Turnover 2.50 What is the residual income? (Correct ans: 21,000) need solution
Net Income Planning Selected operating data for Oakbrook Company in four independent situations are shown below. Fill in the blanks for each independent situation. Sales Variable expense Fixed expense Net income (loss) before tax Units sold Unit contribution margin Contribution margin ratio $ $ A $350,000 0 a. 0 b. $25,000 30,000 $5.20 $ B 0 C. $ $ $111,000 $62,000 $15,000 0 d. $7.00 C 0 e. 0 f. $ $53,200 $28,800 0.4 D $520,000 0 g. $178,000 $(22,000) 0 h.