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?
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?
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? Not ChatGPT Answer
Boom Company has sales volume of 70,000 units with a unit selling price of $120 per unit. The variable expenses are $80 per unit, and the total fixed expenses are $2,100,000. 15. What is the degree of operating leverage? * 2.00 3.00 4.00 5.00 None of the above 16. If the sales volume increases by 15%, and all other items are the same, what will be the effect on the net operating income? * The net operating income will increase by $420,000 The net operating income will increase by $700,000 The net operating income will increase by $1,120,000 The net operating income will increase by $2,800,000 None of the above O O O
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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
Accounting EBIT?
If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? Correct Answer
Ingram Enterprises has variable expenses equal to 65% of sales. At a $500,000 sales level, the degree of operating leverage is 4.5. If sales increase by $50,000, what will be the new degree of operating leverage? Need answer
If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the operating leverage? Right Answer

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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?