The magnitude of operating leverage for blue ridge corporation is 2.8 when sales are $160,000 and net income is $32,000. if sales decrease by 6%, net income is expected to decrease by what amount?

Accounting EBIT?

Unit sales are expected to reach 30,000 per year, the price per unit is expected to be $80, variable costs are $40 per unit and fixed costs are $80,000 per year. The company pays $250,000 in interest per year.  What is the degree of total leverage at the expected levels? Using the degree of total leverage, what is the expected percentage change in earnings per share (EPS) if sales turn out to be 16% lower than expected?

Ohio Steel has a degree of operating leverage of 2.9. The company predicted EBIT of $332,000 and EPS of $5.7 for the year. Actual EBIT were $284,000 and EPS were $2.42.   What is the degree of financial leverage? What is the degree of total leverage? What were earnings before taxes (EBIT - Interest)?   What was the company's gross profit (sales - variable costs)?

Unit sales are expected to reach 30,000 per year, the price per unit is expected to be $90, variable costs are $40 per unit and fixed costs are $80,000 per year. The company pays $250,000 in interest per year.  What is the degree of financial leverage at the expected levels? Using the degree of financial leverage, what is the expected percentage change in earnings per share (EPS) if EBIT turns out to be 12% lower than expected?

Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income should increase by about: Multiple Choice O 7.3% 3.0% 21.9% 243.3%

Given answer accounting questions

Unit sales are expected to reach 30,000 per year, the price per unit is expected to be $60, variable costs are $40 per unit and fixed costs are $90,000 per year. The company pays $250,000 in interest per year.  What is the degree of operating leverage at the expected levels? What is the degree of financial leverage at the expected levels? What is the degree of total leverage at the expected levels? What is the expected percentage change in EPS if unit sales turn out to be 10,000 lower than expected?

Your business plan for your proposed start-up firm envisions first-year revenues of $120,000, fixed costs of $30,000, and variable costs equal to one-third of revenue.a. What are expected profits based on these expectations?b. What is the degree of operating leverage based on the estimate of fixed costs and expected profits?c. If sales are 10% below expectation, what will be the decrease in profits?d. Show that the percentage decrease in profits equals DOL times the 10% drop in sales.e. Based on the DOL, what is the largest percentage shortfall in sales relative to original expectations that the firm can sustain before profits turn negative?f. What are break-even sales at this point?g. Confirm that your answer to (f) is correct by calculating profits at the break-even level of sales.

Cordell, Inc., has an operating leverage of 3. Sales are expected to increase by 9% next year. What is the expected change in operating income next year?fill in the blank 1 %  Increase or Decrease?