Tom Company reports the following data: Sales $291,346 Variable costs 151,946 Fixed costs 57,400 Determine Tom Company's operating leverage. Round your answer to one decimal place. fill in the blank 1

Tom Company reports the following data: Sales $291,346 Variable costs 151,946 Fixed costs 57,400 Determine Tom Company's operating leverage. Round your answer to one decimal place. fill in the blank 1

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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Tom Company reports the following data:

Sales $291,346

Variable costs 151,946

Fixed costs 57,400

Determine Tom Company's operating leverage. Round your answer to one decimal place.
fill in the blank 1

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igmeniMalh.do?invoker=&takeAssignmentSessionLocator=&inprogress%3Dfalse Show Me How Print Item eBook Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales $15,295.0 Food and packaging $(4,896.9) Payroll (4,134.2) Occupancy (rent, depreciation, etc.) (3,667.7) General, selling, and administrative expenses (2,384.5) $(15,083.3) Operating income $211.7 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest tenth of a million (one decimal place). million b. What is McDonald's contribution margin ratio? Round to one decimal place. % c. How much would operating income increase if same-store sales increased by $800 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the nearest…
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REQUIRED: How much is the company's overall income?