Ram Company had $1,000,000 of sales with a CM ratio of 30% and fixed expenses of $250,000 this year. Assume that the company’s sales will increase by $150,000 next year. If there is no change in fixed expenses, by how much will net operating income increase? a) 45,000 b) 60,000 c) 30,000 d) 15,000

Q: At the end of last year, Roberts Inc. reported the followingincome statement (in millions of…

A: Computation:

Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses were…

A: Sales revenue: It is the revenue earned by an organization on selling the products to the outsiders.…

Q: A. Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that…

A:

Q: Atom Company's operating income for selling 100,000 units is $60,000. Assume that Atom Company has…

A: The provided information are: EBIT = $60,000 Interest expense (I) = $18,000

Q: Swann Systems is forecasting the following income statement for the upcoming year: Sales…

A: Net income is calculated after analysing revenues like sales and expenses of the organisation.

Q: Strickler Technology is considering changes in its working capital policies to improve its cash flow…

A: given data  sales = 3,250,000 net profit margin = 7% sales outsanding = 41 days inventory turn over…

Q: This year, the company's sales has increased from $200,000 to $240,000 and its profit has increased…

A: Degree of Operating Leverage = (% change in operating Income / % change in sales)

Q: Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable…

A: Selling price = $190,000 / 1,000 = $190 Unit Variable cost = $76,000 / 1,000 = $76

Q: Green Moose Industries reported sales of $743,000 at the end of last year; but this year, sales are…

A: Additional funds needed (AFN) is the net amount that a business entity requires for funding for the…

Q: Last year, Jackson Tires reported net sales of $40,000,000 and total operating costs (including…

A: Net sales = $40,000,000 Total operating costs = $26,000,000 Net profit before tax = Net sales-Total…

Q: How much is the increase in retained earnings that will contribute to cover the increase in asset?

A: In this case, total assets, net profit and spontaneous liabilities all would increase by the…

Q: Strickler Technology is considering changes in its working capital policies to improve its cash…

A: Cash conversion cycle: It is a cycle that shows times (in days) taken by the firm to convert its…

Q: obin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will…

A: The fund that a company raises by using external sources such as issuing equity or bonds is term as…

Q: Larger Company had originally expected to earn operating income of Php130,000 in the coming year.…

A: Given: Operating income = Php 130,000 Degree of operating leverage = 2.4 Sales growth = 20%

Q: This year, the company's sales has increased from $200,000 to $240,000 and its profit has increased…

A: Contribution margin ratio = Change in profit ÷ Change in sales Degree of operating leverage =…

Q: Bulldogs Inc. recently reported net income of P5,000,0000.  The firm has P40,000,000 total assets.…

A: The increase in retained earnings is calculated as change in forecasted net income multiplied by the…

Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses were…

A: Net profit of the business can be calculated by deducting variable costs and fixed costs from sales…

Q: Company XYZ is currently making sales of $200,000 . At this level , the variable expenses were…

A: Contribution margin  = sales - variable costs = $200000 - 40000 = $160000

Q: In the first year, Buon Uomo’s net sales were $500,000, operating expenses were at 42%, and the…

A: Note : 1) All ratios are calculated with respect to sales.             2) Cost of goods sold =Net…

Q: National Co. recently reported sales of P100 million, and net income equal to P5 million. The…

A: AFN is a tool for determining how much money a company will require in the future. This strategy…

Q: tart year. Neptune Corporation had sales of $654.000 and paid taxes of $71000. Because of the low…

A: Operating leverage seems to be a cost-accounting method that determines how much a company or…

Q: Bulldogs Inc. recently reported net income of P5,000,0000. The firm has P40,000,000 total assets.…

A: The increase in retained earning is a result of increase in net income due to increase in sales…

Q: Ingraham Inc. currently has $205,000 in accountsreceivable, and its days sales outstanding (DSO) is…

A: Calculate the current sales as shown below: Hence, the current sales are $1,053,873.239.

Q: Local Co. has sales of $10.3 million and cost of sales of $6.1 million. Its selling, general and…

A: Answer -    Part A -  Given,  Sales = $10.30 million Cost of goods sold = $6.10 million   So, Gross…

Q: Last year sales were $300,000, net operating income was $75,000, and averageoperating assets were…

A: Last year expenses = Sales - Net operating income = $300,000 - $75,000 = $225,000

Q: A company's current revenue is $62,272 per year. Because new competitors have entered the market, It…

A: EUAB is Equivalent Uniform Annual Benefit. It is the equivalent cost and benefit of the asset spread…

Q: Strickler Technology is considering changes in its working capital policies to improve its cash flow…

A: The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures…

Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses viere…

A: The profits are calculated as difference between sales and total costs.

Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses were…

A: Profit can be defined as the financial gain which is computed by subtracting expenses (variable and…

Q: Foreman Publishing Company’s income for the most recent quarter was $500,000, and the averagenet…

A: Residual income is nothing but the excess income in a particular department over the opportunity…

Q: Tinberg Cans expects sales next year to be $50,000,000. Inventory and accounts receivable (combined)…

A: In simplest terms, the amount of external funds needed  (EFN) will be equal to the expected increase…

Q: Company XYZ made total sales of $250,000 during the month of December. The company also incurred…

A: Current variable expenses = Total expenses x (100 - 60%) = $50,000 x 40% = $20,000 Fixed expenses =…

Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses were…

A: Since the fixed expenses are supposed to remain same even if the sales rises, so the fixed expenses…

Q: Provincial​ Imports, Inc., has assembled last​ year's financial statements​ (income statement and…

A: Pro forma income statement : A pro forma income statement is a financial statement that shows a…

Q: A firm sells 500,000 widgets at $40 each, the cost of the widgets is $25 each, expected general and…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Distribution Limited projects sales next year to be $4 million and expects to earn 5% of that amount…

A: Assets is the resource that generates that generates potential benefits in the future for any…

Q: Company XYZ made total sales of $250,000 during the month of December. The company also incurred…

A: Current variable expenses = Total expenses x (100 - 60%) = $210,000 x 40% = $84,000 Fixed expenses =…

Q: The Boyd Corporation has annual credit sales of $1.6 million. Currentexpenses for the collection…

A: In order to find whether the firm should relax collection efforts, we should calculate the net…

Q: Bohr Paint Company has annual sales of $12 million per year. If there is a profit of $5000 per day…

A: Gross profit is a profit a company makes after deducting associated with making and selling its…

Q: Finlay Corporation had sales this year of $3,270 million, and sales are expected to grow by 20…

A: Formula: Net income = Revenues - expenses Deduction of expenses from revenues derives the net…

Q: Company B’s income statement for this year is shown below. Assume that the company’s sales will…

A: If sales increase by 10%, variable expenses will also increase by 10%. So we can just say…

Q: Blue Elk Manufacturing reported sales of $720,000 at the end of last year; but this year, sales are…

A: The financial forecast is an important strategic step in the planning process because it helps to…