Do fast answer of this accounting questions The magnitude of operating leverage for GreenValley Manufacturing is 2.8 when sales are$300,000 and net income is $45,000. If salesdecrease by 8%, net income is expected todecrease by what amount?

Step 1: Definition of Operating Leverage and its Impact on Net IncomeOperating leverage measures how…

Answered: The magnitude of operating leverage for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
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Accounting EBIT?
What is the degree of operating leverage for this accounting question?
General Accounting
A firm’s contribution margin ratio is 18.4%. If the degree of operating leverage is 15.6 at the $223.1k sales level. Given this information, calculate the firm’s net operating income.
If sales are $325,000, variable costs are 75% of sales, and operating income is $45,600, what is the operating leverage? a. 1.3 b. 1.8 c. 0.0 d. 5.3
1. If ABC company achieves its projections, what will be its degree of operating leverage?
The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?
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A company has an Investment opportunity with the following Information: $ 420,000 Sales Contribution margin ratio Fixed expenses Average operating assets 70% of sales $ 252,000 $ 350,000 The company's minimum requlred rate of return Is 10%. What Is the ROI related to this Investment opportunity? ROI

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The magnitude of operating leverage for Green Valley Manufacturing is 2.8 when sales are $300,000 and net income is $45,000. If sales decrease by 8%, net income is expected to decrease by what amount?