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?

The magnitude of operating leverage for Peterson Industries is 4.2 when sales are $150,000. If sales increase to $165,000, profits would be expected to increase by what percent? Help me

The magnitude of operating leverage for Peterson Industries is 4.2 when sales are $150,000. If sales increase to $165,000, profits would be expected to increase by what percent? Accounting 12

Sales for Green Inc. are expected to change by 16%. If Green's degree of operating leverage is 2.20, how much is Green's operating income expected to change? A В D E 1 2 3 Green's operating income is expected to change by: 4 6 7 8 9 10

What percent?

Increase by what percent?

Delta Industries has an operating leverage of 3.8. If the company's sales increase by 10%, by approximately how much should its net operating income increase? a) 10.0% b) 26.3% c) 38.0% d) 3.8%

Correct Answer

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)?