Homework Help is Here – Start Your Trial Now!
Business
Accounting
The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: %24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above

The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: %24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please I want to learn how to make this problem with a good explanation. One of  those there is the possible answer.

Thank you

 

If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will: A. shift downward and have a steeper slope. B. shift downward and have a flatter slope. C. shift upward and have a steeper slope. D. shift upward and have a flatter slope. E. None of the above 2 The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: 2 24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above
Transcribed Image Text:If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will: A. shift downward and have a steeper slope. B. shift downward and have a flatter slope. C. shift upward and have a steeper slope. D. shift upward and have a flatter slope. E. None of the above 2 The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even revenue: 2 24 360,000 Variable Expense: 60% of Sales What is the actual net operating income? A. $ 180,000 B. $ 216,000 C. $ 144,000 D. $ 108,000 E. None of the above
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS