year, during which fixed costs were $207,000, variable costs were 63% of sales, and sales were $901,000. Operating profit was a.$101,096
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A firm operated at 80% of capacity for the past year, during which fixed costs were $207,000, variable costs were 63% of sales, and sales were $901,000. Operating profit was
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- Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000 Variable expenses 500,000 Contribution margin 1,000,000 Fixed expenses 700,000 Net operating income $ 300,000 Average operating assets $ 1,000,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales $ 300,000 Contribution margin ratio 60 % of sales Fixed expenses $ 132,000 The company’s minimum required rate of return is 10%. Required: 1. What is last year’s margin?From the following information, compute percent change in operating income for the current year. Sales for the previous year $210,000 Contribution margin 181,000 Fixed costs 125,000 Operating income 36,000 Assume that sales for the current year increased by 17%. a.86% b.92% c.74% d.96%A company has invested assets of $3,500,000, total sales of 30,000 units and a desired ROI per unit of 20% . What is the ROI per unit? Group of answer choices $233.33 $70. $23.33 $700,000.
- If a business had sales of $4,369,000 and a margin of safety of 20%, the break-even point was a.$3,495,200 b.$873,800 c.$7,864,200 d.$5,242,800Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000 Variable expenses 690,000 Contribution margin 810,000 Fixed expenses 435,000 Net operating income $ 375,000 Average operating assets $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales $ 420,000 Contribution margin ratio 70 % of sales Fixed expenses $ 252,000 The company’s minimum required rate of return is 10%. 1. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%. If Westerville’s Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? yes or no 2. Would the owners of the company want her to pursue the investment opportunity?Westerville Company reported the following results from last year’s operations: Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600,000 Contribution margin ratio 60 % of sales Fixed expenses $ 288,000 The company’s minimum required rate of return is 10%. 6. What is the ROI related to this year’s investment opportunity? (Do not round intermediate calculations.) 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 8. If the company pursues the investment opportunity and otherwise performs the same as last year,…
- ssProduct Q has a sales of 80,000 units per annum and other details as follows: Material=4,80,000 Labor=1,60,000 Variable Overheads=3,20,000 Fixed Overhead=5,00,000 Fixed portion of the capital employed is 12 Lakhs. Its varying portion will be 50% of sales turnover. Find the selling price per unit to earn 12% net on capital employed, net of tax @40%Company A has current sales of $10,717,172 and a 43% contribution margin. Its fixed costs are $2,370,653. Company B is a service firm with current service revenue of $5,488,617 and a 19% contribution margin. Company B’s fixed costs are $597,932. Compute the degree of operating leverage for Company B if there was a 12% increase in revenue. Round to the hundredth, two decimals.
- A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was: Answer a. $980,000 b. $420,000 c. $1,080,000 d. $180,000Westerville Company reported the following results from last year’s operations: Sales $ 1,800,000 Variable expenses 740,000 Contribution margin 1,060,000 Fixed expenses 700,000 Net operating income $ 360,000 Average operating assets $ 1,200,000 At the beginning of this year, the company has a $400,000 investment opportunity with the following cost and revenue characteristics: Sales $ 600,000 Contribution margin ratio 60 % of sales Fixed expenses $ 288,000 The company’s minimum required rate of return is 10%. 2. What is last year’s turnover? (Round your answer to 1 decimal place.) 3. What is last year’s return on investment (ROI)? (Round your intermediate calculations to 1 decimal place.) 4. What is the margin related to this year’s investment opportunity? 5. What is the turnover related to this year’s investment opportunity? (Round your answer to 1 decimal place.)Durand Division has the following results for the year: Revenues $470,000Net income 130,000Total divisional assets are $625,000. The company's minimum required rate of return is 12 percent. Residual income for Durand is?