Tile Corporation sells 600 units at a selling price of $800 per unit. Tile's variable expense percentageis 35% and its total fixed costs are $139,000. What is Tile's degree of operating leverage? Round totwo decimal points.O 5.792.241.80O 3.30O None of the above

Degree of operating leverage (DOL): DOL reflects an organization's variable and fixed cost…

Answered: Tile Corporation sells 600 units at a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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Cantor Products sells a product for $81 Varlable costs per unit are $44, and monthly fxed costs are $140.600 21 a. What is the break-even point in units? unids A What unit sales would be required to eam a target profit of $310,800? ratal Resied Sales units FAssume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 declmal places.) Ceye of Operating Leverae
Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total fixed costs are $20,000. Assuming a variable cost ratio of 40%, what is the breakeven point in ($) value? (round figures to the nearest number) O a. None of the given answers: O b. 66,667 O c. 33,333 O d. 40,000 O e. 50,00O
Tackett Company sells a single product for $75 cach. the variable costs are $45 cach. Total fixed costs are $225,600. How many units must the company sell to achieve operating income of $90,000? O A. 7013 O B. 10520 O C. 6230 O D.4208
Q.10 During the last accounting period, Carla vista corporation sold 96000 units at $45 each…
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A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
xZ Companys single produchas a selling pnce of 525 per unit. Last year the company reported profit of 5200,000 and variable expenses totaling 5960,000. The product has a 40% contribution margin ratio. Because of competition. XYZ Company will be forced in the current year to reduce its selling price by $2 per unit How many units must be sold in the current year to earn the same profit as was earned last year? Select one: Oa.64.000 Oc44000 0000 00 O e.116 000

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Tile Corporation sells 600 units at a selling price of $800 per unit. Tile's variable expense percentage is 35% and its total fixed costs are $139,000. What is Tile's degree of operating leverage? Round to two decimal points. O 5.79 O2.24 1.80 O 3.30 O None of the above