f sales equal $331,220, variable expenses equal $200,000, and the degree of operating leverage is 18, then the net operating income is:
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If sales equal $331,220, variable expenses equal $200,000, and the degree of operating leverage is 18, then the net operating income is:
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$11,111.
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$18,401.
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$7,290.
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$25,691.
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- If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month, what is their degree of operating leverage? 0.21 1.21 2.4 5.7If sales are $295,000, variable costs are 75% of sales, and operating income is $51,500, the operating leverage is a.4.3 b.1.1 c.1.4 d.0.0If sales are $325,000, variable costs are 75% of sales, and operating income is $49,200, the operating leverage is A. 5.0 B. 0.0 C. 1.7
- Management anticipates fixed costs of $74,100 and variable costs equal to 36% of sales. What will pretax income equal if sales are $341,000?Sales revenue is $11,250,000 Variable expenses is $2,500,000 Total expenses is $8,750,000 Operating income is $2,5000,000 How would you find the degree of operating leverage?Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 94,000 Net operating income $ 86,000 If the variable expenses increase by $1 per unit, the advertising expenditures increase by $15,000, and unit sales increase by 5%, then the best of estimate of the new net operating income is: Multiple Choice $86,375. $63,400. $72,125. $70,525.
- Assume the following information: Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 112,500 15 Contribution margin 187,500 $ 25 Fixed expenses 38,000 Net operating income $ 149,500 The dollar sales to attain a target profit of $214,000 is:The following data are available for X Company:• Ave Selling price of 16 per unit• Variable cost per unit of 11• Units sold is 200,000• Fixed cost is 800,000• Interest expense is 50,000What is the DFL (Degree of Financial Leverage)? • 2.50 times • 2.33 times • 5 times • 1.33 timesCrawford Corp. has an ROI of 23% and a residual income of $10,400. If operating income equals $48,070, what is the amount of average invested assets? Multiple Choice $45,217 $1,105,610 $209,000 $239,200
- Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $290,900 $805,500 Variable costs (116,700) (483,300) Contribution margin $174,200 $322,200 Fixed costs (107,200) (143,200) Operating income $67,000 $179,000 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 operating income increase for each company if the sales of each increased by 10%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ % c. The difference in the of operating income is due to the difference in the operating leverages. Beck Inc.'s operating leverage means that its fixed costs are a percentage of contribution margin than are Bryant Inc.'s.Variable costs as a percentage of sales for Lemon Inc. are 60%, current sales are $518,000, and fixed costs are $177,000. How much will operating income change if sales increase by $43,100?Use the below information to answer the following question. Sales (1,000 units) $ 200,000 Variable costs 110,000 Contribution margin 90,000 Fixed manufacturing costs 40,000 Operating income 50,000 Interest 10,000 Earnings before taxes 40,000 Taxes (30%) 12,000 Net income $ 28,000 Shares Outstanding 1,000 Refer to the table. The degree of financial leverage (DFL) is _____.
