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?

A company has an operating leverage factor of 4. When its sales increase to P500,000, its profit before tax increased by 100%, Its variable cost ratio is 40%. How much is the company’s fixed cost?

1

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)?

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?

3. Cerry Technologies has sales of $4,000,000. The company's fixed operating costs total $700,000 and its variable costs equal 60 percent of sales, so the company's current operating income is $900,000. The company's interest expense is $300,000. What is the company's degree of total operating leverage? What is the company's degree financial leverage?

(Using degree of operating leverage) Last year Baker-Huggy Inc. had fixed costs of $120,000 and net operating income of $29,000. If sales increase by 17 percent, by how much will the firm's NOI increase? What would happen to the firm's NOI if sales decreased by 20 percent? If sales increase by 17%, the change in the firm's NOI will be of %. (Select from the drop-down menu and round to two decimal places.) If sales decrease by 20%, the change in the firm's NOI will be of %. (Select from the drop-down menu and round to two decimal places.)

At a sales level of $270,000, the magnitude of operating leverage for Donuts unlimited is 1.5.