What percentage change in sales occurs if profits increase by 2% when the firm's degree of operating leverage is 3.5?
Q: Please provide answer
A: Approach to solving the question: Detailed explanation:To determine the Economic Order Quantity…
Q: need answer
A: Step 1: Definition of Current LiabilitiesCurrent liabilities are financial obligations that a…
Q: Can you help me solve this general accounting problem with the correct methodology?
A: Step 1: Define Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) represents the direct costs…
Q: I need help solving this general accounting question with the proper methodology.
A: Step 1: Definition of Net Proceeds from Selling an AssetNet proceeds from selling an asset represent…
Q: XYZ Industries manufactures premium-quality glassware. The standard materials cost is 4 pounds of…
A: Explanation of Standard Quantity:Standard quantity refers to the amount of material that should be…
Q: Can you help me solve this Financial accounting problem using the correct accounting process?
A: Step 1: Define Margin (Profit Margin)Concept of Margin: Margin (also called Profit Margin) is a…
Q: 4 PTS
A: Explanation of Assets:Assets are economic resources owned or controlled by a business that are…
Q: What is the actual total direct materials cost? Accounting Question
A: Step 1: Definition of Actual Direct Materials CostActual Direct Materials Cost is the total amount a…
Q: What did goodyear report for net income for the year ending December 31, 2016?
A: Step 1: Definition of Net IncomeNet income is the profit that remains after a company subtracts all…
Q: Savannah Construction reported beginning total assets of $1,100,000 and ending total assets of…
A: Step 1: DefinitionsConcept of Asset Turnover Ratio:The Asset Turnover Ratio is a financial…
Q: Bad Apple, Inc., uses direct labor hours to allocate overhead costs. If Bad Apple estimates $40,000…
A: To calculate the overhead applied, follow these steps:Determine the predetermined overhead rate…
Q: i don't know answer please give me solution
A: Step 1: Definition of Materials Price VarianceMaterials Price Variance is the difference between…
Q: Wiggles Right forecasted sales of $5,000 in October, $4,000 in November, and $4,000 in December. All…
A: Explanation of Accounts Receivable: Accounts receivable represents money owed to a company by its…
Q: What is the correct option
A: Step 1: Definition of Target Profit Sales VolumeTarget profit sales volume refers to the number of…
Q: accounting
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial metric that…
Q: Estimate the variable cost per meal and the total fixed cost using the high-low method
A: Step 1: Definition of High-Low MethodThe High-Low Method is a cost estimation technique used to…
Q: Can you help me solve this general accounting question using valid accounting techniques?
A: Step 1: Definition of Total Direct Labor VarianceTotal direct labor variance is the difference…
Q: Could you explain the steps for solving this financial accounting question accurately?
A: Step 1: Define Operating Cash Flow (OCF)Operating Cash Flow (OCF) refers to the cash generated or…
Q: General Accounting Question please answer
A: We are given:Total Debt = $2,000Debt-to-Equity Ratio = 0.4 1: Find EquityThe debt-to-equity ratio is…
Q: Provide correct option
A: Step 1: Definition of Lower of Cost or Market (LCM)LCM is an inventory valuation rule that requires…
Q: What is the average collection period for accounts receivable?
A: 1. Calculate the Average Accounts Receivable:Average Accounts Receivable = (Beginning Accounts…
Q: Please show me the valid approach to solving this financial accounting problem with correct methods.
A: Concept of Current Assets:Current assets are the short-term assets a company expects to convert into…
Q: Don't use ai given answer general accounting question
A: Step 1: Definition of Gross IncomeGross income is calculated as the total income a company earns…
Q: Correct Answer
A: Provided Data:Original Activity Level = 7,200 machine hoursNew Activity Level = 7,500 machine…
Q: Please give me correct answer
A: Step 1: Definition of Net Sales RevenueNet sales revenue is the total sales revenue earned by a…
Q: Please provide the accurate answer to this General accounting problem using valid techniques.
A: Step 1: Define Carrying Value of Bond LiabilityThe carrying value (also known as book value) of a…
Q: ??!!
A: Explanation of Average Collection Period: The average collection period is the average number of…
Q: Financial Accounting
A: Step 1: Define Gross Profit Margin Gross profit margin is a financial metric that shows the…
Q: Can you explain this general accounting question using accurate calculation methods?
A: Step 1: Definition of Direct Materials Price VarianceThe direct materials price variance measures…
Q: none
A: Step 1: Definition of Raw Materials to be PurchasedThe raw materials to be purchased refers to the…
Q: On January 1, Crestview Finance lends a corporate client $195,000 at an annual interest rate of…
A: Calculation of Interest Revenue for the Quarter Ending March 31To determine the interest revenue…
Q: Calculate the stock in the beginning in the following case
A: Step 1: Definition of Gross LossGross Loss occurs when the cost of goods sold (COGS) exceeds net…
Q: none
A: Let me break it down clearly and simply: Operating leverage measures how sensitive a company's net…
Q: What is the company's unit contribution margin? Accounting
A: Let's calculate the unit contribution margin using the provided data. 1: Understand the DataTons of…
Q: What is the net income ?
A: Explanation of Sales (Revenue):Sales, also referred to as revenue, represent the total income a…
Q: General accounting question
A: Step 1: Definition of Cost of Goods Sold (COGS) using Gross Margin MethodThe Gross Margin Method…
Q: What should Tringale report as its deferred income tax liability as of the end of its first year of…
A: Step 1: Definition of Deferred Income Tax LiabilityDeferred Income Tax Liability arises when a…
Q: I don't need ai answer general accounting question
A: Step 1: Definition of Variable CostingVariable costing is an accounting method where only variable…
Q: What is the net income fore the period? accounting question
A: Step 1: Definition of Net IncomeNet income is the profit a company makes after subtracting all…
Q: I am looking for the correct answer to this general accounting question with appropriate…
A: Step 1: Definition of Activity RateThe activity rate is the cost per unit of activity. It is…
Q: On January 1, 2015, Accounts Receivable was $37,000. Sales on account for 2015 totaled $196,000. The…
A: Explanation of Accounts Receivable:Accounts receivable represents the amount of money owed to a…
Q: ans plz
A: Step 1: Definition of Annual Rate of Return Denominator The denominator in computing the annual rate…
Q: Bryan owns a fitness centre called peak performance Gym
A: Concept of Sales Proceeds:Sales proceeds refer to the total amount received from the buyer when an…
Q: correct answer
A: Step 1: Definition of Total Direct Labor Cost VarianceTotal Direct Labor Cost Variance measures the…
Q: What is the variable cost per unit
A: Concept of Mixed CostsMixed costs are expenses that have both fixed and variable components. A part…
Q: Correct answer please
A: Microsoft P/E Ratio = Price per share/Earning Per ShareMicrosoft P/E Ratio = 420.30/11.20Microsoft…
Q: Financial accounting problem
A: Step 1: DefinitionsConcept of Cash Flow to Creditors:Cash flow to creditors (also known as cash flow…
Q: help me this problem
A: Step 1: Definition of Total AssetsTotal assets represent the sum of a company's resources, including…
Q: Hitler Enterprises has a net income of $315,000 and total assets of $3,500,000. What is the ROA? A)…
A: To calculate ROA (Return on Assets), use the formula:ROA=Net Income/Total Assets×100 Given:Net…
Q: Can you demonstrate the accurate steps for solving this financial accounting problem with valid…
A: Step 1: Define Net IncomeNet Income is the total amount of money a company earns after deducting all…
Step by step
Solved in 2 steps
- Get correct answer accountingA firm has a degree of operating leverage (DOL) of 4.2. If its profits increase by 3%, what is the percentage change in sales?· What does a degree of financial leverage (DFL) of 2.0 indicate? O For every 1 percent change in its EBIT, the firm's EPS will change by 2 percent. O For every 1 percent change in its EBIT, the firm's sales will change by 2 percent. For every 1 percent change in its sales, the firm's EBIT will change by 2 percent. For every 1 percent change in its EPS, the firm's EBIT will change by 0.5 percent. ○ For every 1 percent change in its EPS, the firm's sales will change by 0.5 percent.
- Your business plan for your proposed start-up firm envisions first-year revenues of $180,000, fixed costs of $60,000, and variable costs equal to one-third of revenue. a. What are expected profits based on these expectations? (Round your answer to nearest whole number.) Expected profit b. What is the degree of operating leverage based on the estimate of fixed costs and expected profits? (Round your answer to 2 decimal places.) Degree of operating leverage c. If sales are 10% below expectation, what will be the percentage decrease in profits? (Round your answer to nearest whole number.) Decrease in profits %I want to correct answer general accounting questionThen the decrease sales??
