KI Your answer is incorrect. Try again. Sheridan Company has sales of $2200000, variable costs of $1200000, and fixed costs of $800000. Sheridan's degree of operating leverage is 1.25 0.83 5.00 0.78
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- Assume total sales of $800000, total variable costs of $400000, and total fixed costs of $300000. Of these amounts $200000 of the variable costs are product costs, and $100000 of the fixed costs are period costs. What is the degree of operating leverage? 2.00 8.00 4.00 0.25Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000. Fixed costs are $660,000. Q1. Compute the contribution margin percentage. Q2. Compute the selling price if variable costs are $16 per unit. Q3. Suppose 75,000 units are sold. Compute the margin of safety in units and dollars. Q4. What does this tell you about the risk of Morrison making a loss? What are the most likely reasons for this risk to increase?Bonita Industries has sales of $1200000, variable costs of $550000, and fixed costs of $300000. Bonita’s degree of operating leverage is 1.86. 1.18. 1.33. 2.17.
- Atech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year earned the same profits, $4 million. However, ZTech operates with fixed costs of $5 million and lower variable costs.a. Which firm has higher operating leverage?b. Which firm will likely have higher profits if the economy strengthens?A firm has fixed operating costs of R650,000, a sales price per unit of R20, and a variable cost per unit of R13. At a base sales level of 500,000 units, what is the firm's degree of operating leverage. (1)The manufacturer of a product that a variable cost of $2.50 per unit and total fixed cost of $125,000 wants to determine the level of output necessary to avoid losses. a. what level of sales is necessary to break, even if the product is sold for $4.25? what will be the manufacturer's profit or loss on the sales of 1000,00 units? b.If fixed costs rise to $175,000, what is the new level of sales necessary to break even? c.If variable cost decline to $2.25 per unit, what is the new level of sales necessary to break even? d. If fixed cost were to increase to $17,000, while variable cost declined to $2.25 per unit, what is the new break-even level of sales? e. If a major proportion of fixed costs were noncahs (depreciation), would failure to achieve the break-even level of sales imply that the firm cannot pay its current obligation as they come due? Suppose $100,000 of the above fixed cost $125,000 werre depreciation expense. what level of sales would be the cash break-even level of sales?…
- At an output level of 18,000 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $46,500 in this case. Ignore the effect of taxes. a. What are fixed costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will the operating cash flow be if output rises to 19,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the operating cash flow be if output falls to 17,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)ATech has fixed costs of $10.0 million and profits of $5 million. Its competitor, ZTech, is roughly the same size and this year earned the same profits, $5 million. However, ZTech operates with fixed costs of only $0.25 million but higher variable costs. Calculate the operating leverage for each firm. DOL ATech DOL ZTech. If a firm's margin of safety is 35% on sales of P200,000, then its margin of safety on sales of P300,000 will be (assume fixed costs, the variable cost per unit, and the sales price per unit do not change): a.P105,000 b.P170,000 c.P100,000 d.P 35,000
- Marigold Corp. has fixed costs of $2200000 and variable costs are 20% of sales. What are the required sales if Marigold desires net income of $200000? $12000000 $2750000 $11000000 $3000000a. Given the following graphs, calculate the total fixed costs, variable costs per unit, andsales price for Firm A. Firm B’s fixed costs are $120,000, its variable costs per unit are$4, and its sales price is $8 per unit.b. Which firm has the higher operating leverage at any given level of sales? Explain.c. At what sales level, in units, do both firms earn the same operating profit?How I can resolve this problem. The management of a firm wants to introduce a new product. the product will sell for $4 a unit and can be produced by either of two scales of operation. in the first, total cost are. TC= $3,000 +$2.8Q In the second scale of operation, total cost are TC=$5,000+$2.04Q a. what is the break-even level of outpur for each scale of operation? b. what will be the firm;s profit for each scale of operation if sales reach 5,000 units? c. one-half of the fixed cost are noncash(depreciation) . all other expenses are for cash. if sale are 2,000 units, will cash receipts cover cash expenses for each scale of operation? d. the anticipaded levels of sales are the following: Year Unit Sales 1 4,000 2 5000 3 6,000 4 7,000 If management selects the scale of production which higher fixed cost, what can it expect…