Tucker Enterprises produces a single product. Following is the projected income statement for the upcoming year: Sales (51,000 units @ $40 per unit) $2,040,000 Total variable cost 774,900 Contribution margin 1,265,100 Total fixed cost 955,500 Operating income $309,600 Compute the degree of operating leverage. Round answer to two decimal places. Select one: C a. 17.33 b. 3.09 c. 4.09 d. 1.61 e. 2.63` O O O O
Q: Determine Tom Company's operating leverage. Round your answer to one decimal place.
A: Operating leverage is calculated to find out how an increase in the revenue can increase the…
Q: Klamath Company produces a single product. The projected income statement for the coming year is as…
A: Break-even sales revenue produces the net income of $0. Therefore at break-even sales, fixed cost is…
Q: Snellville Co. reports the following data: Sales $687,100 Variable costs 474,100 Contribution…
A: Operating leverage = Contribution margin/Net operating income
Q: Tom Company reports the following data: Sales $291,346 Variable costs 151,946 Fixed costs 57,400…
A: Contribution margin = Sales - Variable costs Net income = Contribution margin - Fixed costs…
Q: Assume MIX Incorporated has sales volume of $1,162,000 for two products with May sales and…
A: Total contribution margin = Product A contribution margin + Product B contribution marginAt Break…
Q: Tucker Co. reports the following data: Line Item Description Amount Sales $911,900 Variable…
A: The objective of the question is to calculate the operating leverage of Tucker Co. Operating…
Q: Operating leverage Haywood Co. reports the following data: Line Item Description Amount Sales…
A: Operating income is a measure used to evaluate the effect of change in revenues on the operating…
Q: Data concerning Celenza Corporation's single product appear below: selling price per unit- $230…
A: Formula: Dollar sales to attain that target profit = (Fixed expense + Target profit) / Contribution…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: The objective of the question is to calculate the revised net operating income for Whirly…
Q: 11. George Corporation has the following information for thc current ycar: Selling price per unit…
A: 0 units 100 units 200 units 300 units 400 units 500 units Sales 0 1,000 2,000 3,000 4,000 5,000…
Q: A company reports the following for this year. Units sold 1,800 units Sales price per unit $ 36…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: CVP Analysis is a termed as Cost Volume Profit Analysis. Under this technique operating income…
Q: Operating Leverage Snellville Co. reports the following data: Sales $675,600 Variable costs 432,400…
A: Operating leverage of the business due to change in sales revenue, how much income of the business…
Q: Frymire Corporation produces and sells a single product. Data concerning that product appear below:…
A: Contribution margin per unit = sales - variable costs = $240-79.20 = $160.80 Contribution margin…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $295,300…
A: Leverage analysis is a financial assessment that involves evaluating the impact of fixed costs on a…
Q: Profit-Volume Chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit…
A: Answer a. Maximum Operating Loss will occur when sale is $0. If Sale is $0, then Variable Cost will…
Q: The CVP income statements shown below are available for Blossom Company and Crane Company. Sales…
A: The contribution margin is calculated as the difference between sales and contribution margin. The…
Q: The income statement for Symbiosis Manufacturing Company for the year is as follows: Sales (10,000…
A:
Q: Alexander Inc. makes basketballs. The results for the year were as follows: Basketballs…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Marissa Corporation produces and sells a single product. Data concerning that product appear below:…
A: In order to determine the units to be sold to attain that target profit, the fixed cost and the…
Q: Snellville Co. reports the following data: Line Item Description Amount Sales $673,800 Variable…
A: The objective of this question is to calculate the operating leverage of Snellville Co. using the…
Q: If there is a 12% in sales, compute the percentage of net increase in operating income for Maldives.…
A: Contribution Margin=Sales-Variable Cost Contribution Margin Ratio=(Contribution Margin/Sales) X 100
Q: out: ut: Sales Labor Raw materials Energy Capital Other $200,150 31, 105 35,005 4,900 45,500 1,900…
A: OutputSales $ 2,00,150 $ 2,01,150InputLabour $ 31,105 $ 41,105InputRaw…
Q: White Lake Inc. produces and sells a single product. Data concerning that product appear below:…
A: 1. BREAK EVEN SALES : = (FIXED COST X SALES) / CONTRIBUTION PER UNIT 2. UNITS TO SELL TO ATTAIN…
Q: Klamath Company produces a single product. The projected income statement for the coming year is as…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Q: The company reported a sales of 586,500 (36% variable cost). Fixed cost and annual interest expense…
A: Combined Leverage is one of the type of leverage which shows high profits due to fixed costs in the…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: It involves calculating how changes in sales volume affect a company's profitability.By subtracting…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: The income statement shows the financial position of the company whether the business is making a…
Q: The following income statement applies to Finch Company for the current year: Income Statement Sales…
A: The contribution margin approach can be used to calculate the magnitude of operating leverage, which…
Q: Data concerning Strite Corporation's single product appear below: Selling price per unit Variable…
A: Contribution Margin The amount which is determined by reducing the variable cost from the overall…
Q: The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00…
A: Formula: Unit contribution margin = Selling price - Variable cost per unit
Q: Refer to the data in requirement 5. Assume the new plant is built and that next year the company…
A: The Degree of Operating Leverage (DOL) is a financial metric used to measure the sensitivity of a…
Q: Whirly Corporation’s most recent income statement is shown below: Total Per Unit Sales…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: The Cartwright Company income statement revenue and per unit costs are as follows: Sales $100.00…
A: Degree of operating leverage defined as the ratio which measures how much of the company operating…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Trillium, Inc. reports the following information for April: Alpha Beta Units sold 3,000 units 750…
A: Contribution Margin Ratio: The contribution margin ratio refers to the ratio of a business entity…
Q: Tucker Company reports the following data: Sales $415,400 Variable costs 278,300 Contribution…
A: Operating Leverage = Total Contribution margin / Operating Income
Q: The single-column CVP income statements shown below are available for Wildhorse Company and Blossom…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: . The operating breakeven point is units.
A: Cost Volume Profit -The break-even point is the level of sales at which the company makes neither a…
Q: Teague Co. reports the following data: Sales $489,300 Variable costs 278,900 Contribution…
A: Solution Formula = Operating leverage = Contribution margin / Operating income.
Q: Hudson Company reports the following contribution margin income statement. HUDSON COMPANY…
A: The margin of safety is the amount of profitability that results from the difference between the…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: Contribution margin analysis, break even point analysis, margin of safety etc are the important…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Peterson Manufacturing is evaluating two different operating structures which are described below. The firm has annual interest expense of $250, common shares outstanding of 1,000, and a tax rate of 40 percent. Fixed Cost Price per unit Variable cost per unit Operating Structure 1 $500 $1 $0.75 Operating Structure 2 $1200 $1 $0.70 1. For each operating structure, calculate x. EBIT and EPS at 10,000, 20,000, and 30,000 units. y. the degree of operating leverage (DOL) and degree of total leverage (DTL) using 20,000 units as a base sales level. z. the operating breakeven point in units. 2. Which operating structure has greater operating leverage and business risk? 3. If Peterson projects sales of 20,000 units, which operating structure is recommended?Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 65,000 to 105,000 units is given below: Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 95,000 units during the year at a selling price of $9.36 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Total cost Variable cost Fixed cost Total cost Cost per unit: Variable cost Fixed cost Total cost per unit $ $ $ 65,000 Units Produced and Sold 85,000 214,500 430,000 644,500 $ 0.00 $ 43,000 43,000 $ 0.00 $ 105,000 43,000 43,000 0.00Given the following data: Selling price per unit Variable production cost per unit Fixed production cost Sales commission per unit Fixed selling expenses $ 2.00 $ 0.30 $3,000 $ 0.20 $1,500 The break-even point in dollars is: (Round your intermediate calculations to 2 decimal places.)
- Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating incomeMa3. Nike Corp. recorded operating data for its shoe division for the year as follows: Sales - $12160000 Contribution margin - 380000 Controllable fixed costs - 120000 Average total operating assets - 760000 What is the controllable margin for the year? A.$260000 B.32% C.$380000 D.50%
- Operating Leverage Haywood Co. reports the following data: Sales $6,160,000 Variable costs (4,620,000) Contribution margin $1,540,000 Fixed costs (440,000) Operating income $1,100,000 Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 270,000 $ 370,000 $ 370,000 Variable costs 57,000 220,000 137,100 Fixed costs total $370,000. What sales volume would generate an operating profit of $235,000? (Assume the current product mix.)Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $374,700 $1,056,000 Variable costs 150,300 633,600 Contribution margin $224,400 $422,400 Fixed costs 158,400 246,400 Income from operations $66,000 $176,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ %
- For the Year Ended December 31, 20X1 Sales (23,000 tires at $66 each) Variable costs (23,000 tires at $33) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (30%) Earnings after taxes (EAT) a. Compute the degree of operating leverage. Note: Round your answer to 2 decimal places. Degree of operating leverage b. Compute the degree of financial leverage. Note: Round your answer to 2 decimal places. Degree of financial leverage ............... c. Compute the degree of combined leverage. Note: Round your answer to 2 decimal places. Degree of combined leverage d. Compute the break-even point in units. $ 1,518,000 759,000 430,000 $ 329,000 51,500 $ 277,500 83,250 $ 194,250Green Valley Corp.'s contribution format income statement for the most recent month follows: Sales $ 506,000 Variable expenses 236,500 Contribution margin 269,500 Fixed expenses 241,700 Net operating income $ 27,800 Required: a. Compute the degree of operating leverage to two decimal places. b. Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 3% increase in sales. c. If Green Valley’s competitor Black Mountain Inc. has a degree of operating leverage as 8, which company has the higher operating risk?CVP Analysis, *What IT?" AnalysisKevin Co. projected contribution-format income statement for the upcoming month is shownBelow Sales (500 units) $10000Variable expenses. 4000Contributions margin. 6000Fixed expenses. 1000Net operating income. 5000Required:a.) Compute the breakeven point in units.b) Compute the breakeven paint in dollars.c.) If the company wishes to earn a monthly target profit of $10,000, how many units must be sold each month?d.) Compute the company's margin of safety. State your answer in both dollar and percentage terms,e.) The company's manager thinks that adding a salaried sales staff member at a cost of 52,000 per month will increase sales by $4,000 per month. If he is correct, what will be the net dollar advantage or disadvantage of making this change?t.) Refer to the original data, the company's manager believes that a new production process will improve profitability. He plans to add new machinery that will cut variable expenses…