The information for Primrose Corporation is given below. Degree of operating leverage 3 Break-even revenue Variable Expense 220,000 45% of Sales What is the actual net operating income? A. $ 60,500 B. $ 66,000 C. S 181,500 D. $ 198,000 E. None of the above
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- What is NUBD’s degree of operating leverage?From the information provided in the table (i) Calculate EBIT, Fixed Cost, Variable cost and Profit after tax for Company A and S as per financial data given below. (ii) Comment on the Operating and Financial risk for both the firms. Give reasons for your answer. Particulars A S Variable Expenses as a percentage of sales 75% 50% Interest Expense in Amount Rs. 300 1000 Degree of Operating Leverage 6 2 Degree of Financial Leverage 4 2 Income Tax Rate 35% 35%Need Help with this Question
- Understanding CVP relationships Calculate the missing amounts for each of thefollowing firms: Contribution Variable Margin Fixed OperatingSales Costs Ratio Costs Income (Loss)Firm A $320,000 ? 32% ? $38,300Firm B ? $465,050 ? $118,000 71,950Firm C 134,000 ? 26% 36,700 ?Firm D ? 59,000 20% ? (4,920)1) What is the degree of operating leverage? 2) What is the degree of financial leverage? 3) What is the degree of combined leverage?If the sales of business x are $ 150.000 , variable cost is $ 45.000 , fixed cost is $ 15.000 and EBIT is $ 30.000 , what is the operating leverage of this business ? a.5 b.4 c.3 d.4,5 e.3,5
- 20. From the following data calculate: a) P/V Ratio b) Variable cost and c) Profit Rs 80,000 15,000 50,000 Sales Fixed expenses Break even point 000.00 Answer all the question PART-C 21 What are the objectives of management accoun Or b) Distinguish between management accounting a accounting. 22. From the following information calculate the b Total asset/Net worth a. = 3.5 Sales/fixed assets = 6 -Am. 121.INCOME STATEMENT XYZ Industries is forecasting the following income statement: Sales P8,000,000 Operating costs excl. depr. & amort. 4,400,000 EBITDA 3,600,000 Depreciation & amortization 800,000 EBIT 2,800,000 Interest 600,000 EBT 2,200,000 Taxes (40%) 880,000 Net income 1,320,000 The CEO would like to see higher sales and a forecasted net income of 2,500,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 10%. The tax rate, which is 40%, will remain the same. What level of sales would generate 2,500,000 in net income? *