Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage. To evaluate: The degree of operating leverage if the fixed expenses is $270000.

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Answer 1

Question

Chapter 2, Problem 1AE

1.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

To evaluate: The degree of operating leverage if the fixed expenses is $270000.

2.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as degree of operating leverage.

Requirement 2

The degree of operating leverage and margin of safety in percentage using Excel.

3.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 3

The percentage change in net operating income if sales is increased by 15%.

4.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 4

The net operating income of the company with the increased sales figures.

5.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5a

The break-even of unit sales, margin of safety in dollars and degree of operating leverage.

5a.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5b

The degree of operating income leverage when the aim is to sell 600 units per year.

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Answer 2

Question

Chapter 2, Problem 1AE

1.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

To evaluate: The degree of operating leverage if the fixed expenses is $270000.

2.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as degree of operating leverage.

Requirement 2

The degree of operating leverage and margin of safety in percentage using Excel.

3.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 3

The percentage change in net operating income if sales is increased by 15%.

4.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 4

The net operating income of the company with the increased sales figures.

5.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5a

The break-even of unit sales, margin of safety in dollars and degree of operating leverage.

5a.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5b

The degree of operating income leverage when the aim is to sell 600 units per year.

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 2, Problem 1AE

1.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

To evaluate: The degree of operating leverage if the fixed expenses is $270000.

2.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as degree of operating leverage.

Requirement 2

The degree of operating leverage and margin of safety in percentage using Excel.

3.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 3

The percentage change in net operating income if sales is increased by 15%.

4.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 4

The net operating income of the company with the increased sales figures.

5.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5a

The break-even of unit sales, margin of safety in dollars and degree of operating leverage.

5a.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5b

The degree of operating income leverage when the aim is to sell 600 units per year.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 2, Problem 1AE

1.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

To evaluate: The degree of operating leverage if the fixed expenses is $270000.

2.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as degree of operating leverage.

Requirement 2

The degree of operating leverage and margin of safety in percentage using Excel.

3.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 3

The percentage change in net operating income if sales is increased by 15%.

4.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 4

The net operating income of the company with the increased sales figures.

5.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5a

The break-even of unit sales, margin of safety in dollars and degree of operating leverage.

5a.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5b

The degree of operating income leverage when the aim is to sell 600 units per year.

Expert Solution & Answer

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See solution

Answer 5

Chapter 2, Problem 1AE

1.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

To evaluate: The degree of operating leverage if the fixed expenses is $270000.

2.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as degree of operating leverage.

Requirement 2

The degree of operating leverage and margin of safety in percentage using Excel.

3.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 3

The percentage change in net operating income if sales is increased by 15%.

4.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 4

The net operating income of the company with the increased sales figures.

5.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5a

The break-even of unit sales, margin of safety in dollars and degree of operating leverage.

5a.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5b

The degree of operating income leverage when the aim is to sell 600 units per year.

Answer 6

Chapter 2, Problem 1AE

1.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

To evaluate: The degree of operating leverage if the fixed expenses is $270000.

Answer 7

Chapter 2, Problem 1AE

1.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

To evaluate: The degree of operating leverage if the fixed expenses is $270000.

Answer 8

2.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as degree of operating leverage.

Requirement 2

The degree of operating leverage and margin of safety in percentage using Excel.

Answer 9

2.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as degree of operating leverage.

Requirement 2

The degree of operating leverage and margin of safety in percentage using Excel.

Answer 10

3.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 3

The percentage change in net operating income if sales is increased by 15%.

Answer 11

3.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 3

The percentage change in net operating income if sales is increased by 15%.

Answer 12

4.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 4

The net operating income of the company with the increased sales figures.

Answer 13

4.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 4

The net operating income of the company with the increased sales figures.

Answer 14

5.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5a

The break-even of unit sales, margin of safety in dollars and degree of operating leverage.

Answer 15

5.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5a

The break-even of unit sales, margin of safety in dollars and degree of operating leverage.

Answer 16

5a.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5b

The degree of operating income leverage when the aim is to sell 600 units per year.

Answer 17

5a.

To determine

Introduction:

Degree of operating leverage: When we observe any business transactions, we observe that the operating income of the company is fluctuating according to the changes in the sales. The measurement of this sort of fluctuation can be termed as the degree of operating leverage.

Requirement 5b

The degree of operating income leverage when the aim is to sell 600 units per year.

Answer 18

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Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 2 - Prob. 2.1Q Ch. 2 - Prob. 2.2Q Ch. 2 - Prob. 2.3Q Ch. 2 - Prob. 2.4Q Ch. 2 - Prob. 2.5Q Ch. 2 - Prob. 2.6Q Ch. 2 - Prob. 2.7Q Ch. 2 - Prob. 2.8Q Ch. 2 - Prob. 2.9Q Ch. 2 - Prob. 1AE

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Chapter 2 Solutions