The following is last month's contribution format income statement:   Sales (8 000 units)  ................  R800 000   Less variable expenses ............. 500 000   Contribution margin .................   300 000   Less fixed expenses .................  200 000   Net income ..........................     R100 000   What is the company's degree of operating leverage?   A. 0.125   B. 8.0   C. 3.0   D. 0.333

Q: ieverage is 6 (contribution margin dividled by net income), one would expect net income to increase…

A: Degree of operating leverage (DOL) refers to the method that measures the percentage change in EBIT…

Q: Q2: Fill in the missing amounts in each of the four case situations below. Each case is independent…

A:

Q: 26-If the sales of the company are OMR 300,000, Profit OMR 30,000, variable cost 60%, find out the…

A: Sales revenue: It is the revenue earned by an organization on selling the products to the outsiders.…

Q: Bryce Co. sales are $891,000, variable costs are $460,100, and operating income is $203,000. The…

A: The contribution margin ratio =( sales - variable costs) / sales * 100 =($891,000 - $460,100 )/…

Q: cion's contribution format income statement for last P 2,000,000 ble Costs 1400.000 ribution Margin…

A: Contribution margin ratio is the ratio of the contribution margin to sales revenue Breakeven point…

Q: If a business had sales of $4,316,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Total sales = Margin of Safety + Break even point Break even point : At break even point, there is…

Q: Selling price per unit =$50. Variable expense ratio =40%. Fixed expenses per month =$30,000. The…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the…

A: Contribution margin = Sales - Variable costs Contribution margin ratio = Contribution margin / Sales…

Q: 1. Prepare the​ company's contribution margin income statement for the month of April. Round all…

A: Contribution margin income statement shows all variable costs first so that contribution margin can…

Q: Ssume that sales are predicted to be $26,250, the expected contribution margin is $10,500, and a net…

A: The correct option is c. $30,625 Calculation: Net Loss=Contribution margin-Fixed cost…

Q: If sales are $796,000, variable costs are 76% of sales, and income from operations is $230,000, what…

A: Given: Sales=$796000Variable cost =76% of salesIncome from operations=$230000

Q: Sensabaugh inc, a company that produces and sells a single product, has provided its Contribution…

A: Contribution Margin is the difference between Sales and Variable Cost. It is calculated with the…

Q: If the contribution margin ratio for France Company is 32%, sales are $488,000, and fixed costs are…

A: Contribution margin = Sales x contribution margin ratio Operating income = Contribution margin -…

Q: Presented here is the income statement for Big Sky Incorporated for the month of February: $ 60,500…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: The cost services is 75% of service income. If the gross profit is P50,000, how much is the service…

A: Gross profit: The difference between the sales and the cost of goods sold is called gross profit.…

Q: If a business had sales of $4,219,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Explanation:   Margin of safety will be  formula = Actual sales - Break even point  Sales…

Q: 6. BREAKEVEN FOR SINGLE PROJECT Given: FC = P30,000 per month v = P25 per unit r= P35 per unit…

A: The break even sales are the sales where business earns no profit or loss during the period.

Q: Net profit is 7% of sales; BES % is 80%; Variable costs, $260,000. Compute the Actual Sales.

A: Let Assume Total Actual Sales is X Then BES Sales is = X * 0.80 = 0.80X On BES Sale Profit become…

Q: Assume a company reported the following results: Sales $ 400,000 Variable expenses 260,000…

A: Formula: Margin = ( Contribution margin / Sales ) x 100

Q: The operating expenses of a manufacturer last month were $5,000.00. This amount was 55% of gross…

A: Operating expenses are those expenses that are incurred to run normal business operation. examples…

Q: Sales (30,000 balls) ..... Variable expenses Contribution margin.... Fixed expenses Net operating…

A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…

Q: If a business had sales of $3,510,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Formulas: Margin of Safety = (Sales - Break even Sales) / Sales

Q: 40. Jupiter Inc. reports the following information for August: Sale revenue.........…

A: Given, Sales revenue = $800,000 Variable costs = $200,000

Q: Complete each of the following contribution format income statements by supplying the missing…

A: Sales =contribution margin+ variable expenses=236,284+150,052=386,336 Fixed expenses=contribution…

Q: The following data are available for the Firempong Corporation for a recent month: Product 1 Product…

A: Break-even point = Fixed costs /Weighted Average Contribution margin per unit  where, Contribution…

Q: The contribution format income statement for Huerra Company for last year is given below: Sales…

A: Margin = Operating income / salesTurnover = Sales / Average operating assetsReturn on investment =…

Q: 20. A company’s contribution approach income statement showed net income, variable production…

A: Sales = Net income + Variable cost + Fixed cost = P4,000 + P15,000 + P10,000 = P29,000

Q: Where do you get 1.10 the one you multiple by 30% of gross profit

A: Lets understand the basics.A fundamental financial indicator known as gross profit, also known as…

Q: 5. Pong Incorporated's income statement for the most recent month is given below. Total $150,000…

A: Net Operating Income: Net operating income (NOI) decides an element's or alternately property's…

Q: 1. $ 2. AWN - 3. Sales Revenue Variable Expenses 4. 415,000 $ 150,000 336,000 55,000 83,000 117,000…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Q: If sales are $797,000, variable costs are 69% of sales, and operating income is $206,000, what is…

A: Formula: Contribution margin ratio = [ ( Sales - variable cost ) / Sales ]  x 100

Q: If a business had sales of $3,632,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Breakeven is the point in the cost volume and profit analysis at which an entity is in a situation…

Q: Contribution Margin= $13427 Operating Income = $6390 if volume goes up by 17.08%, operating income…

A: The Relationship between the contribution margin and the net operating income is given by operating…

Q: a.) b.)

A: The amount of potential profit in the retail price of merchandise is measured by initial markup…

Q: With the following data, how many units must be sold to generate an operating income of…

A: Operating income: Income statement reports revenues and expenses from business operations, and the…

Q: Copr. Goed Uplift, Inc. reported the following financial data for the segmented income statements:…

A: There are three types of expenses variable expense, fixed expenses and semi variable…

Q: low is a contribution format income statement for last month when Hill Corp. made and sold 10,000…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: 6. Chung-Ang Company has two department. The company's most recent monthly contribution format…

A: Sunk Cost :— It is the cost that is already incurred in past and it is now irrecoverable.…

Q: llowing data relates to Campus Goods Inc:                                            Amount in $…

A: Solution 8A: Cost of goods sold is cost of sales which is given as a % of sales. Therefore to…

Q: If a business had sales of $3,814,000 and a margin of safety of 20%, the break-even point was Oa.…

A: Margin of safety % = Margin of safety in dollars/Actual sales Margin of safety in dollars = Actual…

Q: If Pluto Company sold 3000 units at sales price of SR45. The variable cost per unit is SR25.…

A: Lets understand the basics. Contribution margin is a margin generated from the sales. Contribution…

Q: 20. From the following data calculate: a) P/V Ratio b) Variable cost and c) Profit Rs 80,000 15,000…

A: Hi student Since there are multiple questions, we will answer only first question. Variable costs…

Q: When the gross profit percentage (Markup) of costs is 30%the gross profit percentage of sales is…

A: Gross Profit % is the gross profit earned divided by the sales value / selling price Gross Profit %…

Q: pls solve

A: If the variable cost ratio is 60%, then the contribution margin ratio is 40%. Sales    400,000.00 x…

Q: need help

A: Step 1: Define Net Operating Income:Net operating income will be zero if the contribution margin…

Q: Frinner Company has two divisions, A and B, that reported the following results for October: Sales…

A: On the segmented income statement traceable fixed costs are subtracted from the contribution margin…

Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.