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?
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $341,300…
A: Operating leverage is calculated by dividing the contribution margin by the income from operations.…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $355,700…
A: Operating leverage formula:-
Q: From the following information, calculate Operating Leverage, Financial Leverage and Combined…
A: Sales (S) = Rs 900000 Variable costs (V) = 60% of S = Rs 540000 EBIT = Rs 240000 EBT = 125000
Q: Sales revenue $11,250,000 Variable expenses $6,250,000 Fixed expenses $2,500,000 Total expenses…
A: Operating income measures the profitability of a company from the operations of the company. The…
Q: The information for Sacramento Corporation is given below. Degree of operating leverage: Break-even…
A: breakeven revenue *Contribution margin%=Fixed cost
Q: Solemn Company has an operating leverage of 2,0. Sales for the current year are $100,000 with a…
A: solution : given : operating leverage =2.0 sales (current year) =$100,000…
Q: HARDING COMPANY Income Statement For the Year Ended December 31, 2013 Sales (10,500 skates @…
A: Sales = $630,000 Variable cost = $262,500 Selling price per-unit = $60 Variable cost per-unit = $25
Q: Sales (30,000 tires at $80 each).. $2,400,000 Less: Variable costs (30,000 tires at $40). 1,200,000…
A: Note: According to our guidelines, we can only answer three subparts at once. Post other parts…
Q: Sales revenue for XYZ Company is $1,000,000. The cost of goods sold is $450,000 and the operating…
A: Thus, the net operating income is $300,000.
Q: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant…
A: Operating leverage is an indicator through which management of a company can able to determine the…
Q: Sales are 150,000. COGS are 100,000. SG&A Overhead is 20,000. Depreciation is 15,000. Interest…
A: Free cash flows refer to the cash flow surplus remaining with the entity after meeting all the…
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A: Degree of operating leverage is calculated as: = Contribution Margin / Operating Income Break - even…
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A: Degree of Financial Leverage is a financial ratio that measures the sensitivity of the entity's net…
Q: Operating Leverage Westminster Co. reports the following data: Sales $875,000 Variable costs…
A: Operating leverage: Operating leverage is a financial ratio which measures the extent to which the…
Q: Frontier Corp. has a contribution margin of $1,682,000 and profit of $336,400. What is its degree of…
A: Degree of operating leverage is one of the important ratio between contribution margin and net…
Q: A firm has revenues of $150,000, a contribution margin ratio of 35%, and fixed expenses that total…
A: So answer is operating income increase by $10500 Fixed expenses do not change in change in revenue.…
Q: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant…
A:
Q: Sales $400,000 106,000 Variable expenses Contribution margin Fixed expenses 294,000 196,000…
A: Degree of Operating Leverage tell us how much company's operating income will change in response to…
Q: Based on the below data, compute for the Degree of Financial Leverage: Sales…
A: Formula: Degree of Financial Leverage = EBIT / EBT
Q: The degree of operating leverage (DOL) is ___
A: Degree of Operating Leverage: It measures the change in the operating income in response to the…
Q: Division Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using…
A: Sales and net income are related to each other and that gives the profit margin.Good profit margins…
Q: The statement of comprehensive income of Blanche Company for the current year is presented below…
A: Degree of operating leverage in the business shows how much operating income or income before taxes…
Q: Given the following income statement for OR company for 20X4: Sales (30,000 units)…
A: Degree of operating leverage = contribution margin / (contribution margin - fixed cost) Contribution…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $326,000…
A: Operating leverage: It is calculated by dividing the contribution margin by the operating income of…
Q: Maverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $543,418…
A: The degree of combines leverage shows the relationship between earning per share(EPS) and level of…
Q: Assume a company reported the following results: Sales Variable expenses Contribution margin Fixed…
A: Residual income: Residulal income means excess of income earned over the desired income. Desired…
Q: 1. Compute the degree of operating leverage for each company. Trimax ? Quintex ? 2. Compute the…
A: 1. Trimax 120,000/30,000 4 Quintex 240,000/30,000 8 2. Trimax, Inc. 90,000/50% 180,000…
Q: Sales (30,000 units) Tk.15,00,000 Tk.50 Variable Expense 12,00,000 40 Contribution Margin…
A: Contribution margin ratio = Contribution margin/Sales Breakeven Sales = Fixed costs/ Contribution…
Q: Assume that the operating results for last year were as follows: Sales $360,000 Less: Variable…
A: Formula: Operating leverage = Contribution margin / Net operating income
Q: Sales revenue for XYZ Company is $1,000,000. The cost of goods sold is $450,000 and the operating…
A: The following calculations are done in the records of XYZ Company to evaluate the residual income of…
Q: Sales (75,000units) P 750,000…
A: Degree of operating leverage = Contribution margin / (contribution margin - fixed cost) Contribution…
Q: Tennill Inc. has a $1,400,000 investment opportunity with the following characteristics: Sales $…
A: Formula: Margin = Net operating income / sales Turnover = sales / Average Assets
Q: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 2013 Sales (30,000 tires at…
A: Break even refers to the situation of no profit and no loss. At the point of break even, business is…
Q: The degree of financial leverage is
A: An organization’s ability to meet its long-term commitments and the impact on its profit-making…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales…
A: a.
Q: Operating Leverage Snellville Co. reports the following data: Sales $483,900 Variable costs 329,100…
A: Operating leverage: It is the ratio that measures the proportion of fixed cost on the total costs…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $275,600…
A: The operating leverage is calculated as contribution margin divided by operating income.
Q: Company's sales are ₱600,000, its fixed expenses are ₱150,000, and its variable expenses are 60% of…
A: Solution: Degree of operating leverage is contribution margin divided by operating income.
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A: 15. Formula for calculating Degree of Operating Leverage is as follows: Formula = Contribution…
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A: The degree of financial leverage (DFL) is a leverage ratio that determines how sensitive a…
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A:
Q: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc.…
A:
Q: Operating leverage Beck Inc. and Bryant Inc.have the following operating data: Beck…
A: Operating leverage is the one that is calculated to measure the level to which the income can be…
Q: Sales (30,000units) P 150,000…
A: Combined Leverage : it the measure effect both of financial and operating leverage on earning per…
Q: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are…
A: Degree of operating leverage (DOL): DOL Reflects an organization's variable and fixed cost…
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A: Calculation of degree of financial leverage (DFL):Answer:Degree of financial leverage of company is…
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A: Leverage is used to measure the financial performance of the business entity. It can be of three…
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?
Degree of operating leverage is computed by dividing the contribution margin by the operating income. Contribution margin is computed by subtracting the variable costs from the sales revenue
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- Company A has current sales of $10,000,000 and a 45% contribution margin. Its fixed costs are $3,000,000. Company B is a service firm with current service revenue of $5,000,000 and a 20% contribution margin. Company Bs fixed costs are $500,000. Compute the degree of operating leverage for both companies. Which company will benefit most from a 25% increase in sales? Explain why.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 a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7
- INCOME STATEMENT Hermann Industries is forecasting the following income statement:Sales $8,000,000Operating costs excluding depr. & amort. 4,400,000EBITDA $3,600,000Depreciation & amortization 800,000EBIT $2,800,000Interest 600,000EBT $2,200,000Taxes (40%) 880,000Net income $1,320,000The CEO would like to see higher sales and a forecasted net income of $2,500,000. Assumethat operating costs (excluding depreciation and amortization) are 55% of sales and thatdepreciation and amortization and interest expenses will increase by 10%. The tax rate, whichis 40%, will remain the same. What level of sales would generate $2,500,000 in net income?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 _____.Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $325,700 $1,000,000 Variable costs 130,700 600,000 Contribution margin $195,000 $400,000 Fixed costs 120,000 200,000 Income from operations $75,000 $200,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. fill in the blank 1 Bryant Inc. fill in the blank 2 b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $fill in the blank 3 fill in the blank 4 % Bryant Inc. $fill in the blank 5 fill in the blank 6 % c. The difference in the of income from operations 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…
- Operating leverage Beck Inc. and Bryant Inc.have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable costs 750,000 1,250,000 Contribution margin $500,000 $ 750,000 Fixed costs 400,000 450,000 Income from operations $ 100,000 $300,000 a.Compute the operating leverage for Beck Inc.and Bryant Inc. b.How much would income from operations increase for each company if the sales of each increased by 20%? c.Why is there a difference in the increase in income from operations for the two companies? Explain.If sales equal $331,220, variable expenses equal $200,000, and the degree of operating leverage is 18, then the net operating income is: Multiple Choice $11,111. $18,401. $7,290. $25,691.Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $355,700 $950,000 Variable costs 142,700 570,000 Contribution margin $213,000 $380,000 Fixed costs 142,000 190,000 Income from operations $71,000 $190,000 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 income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $ % Bryant Inc. $ % c. The difference in the of income from operations 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.
- Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $341,300 $1,072,500 Variable costs 136,900 643,500 Contribution margin $204,400 $429,000 Fixed costs 131,400 234,000 Income from operations $73,000 $195,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. 2.8 Bryant Inc. 2.2 b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. $fill in the blank 42 % Bryant Inc. $fill in the blank 33 %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 operating leverage (DOL) is _____.Maverick Technologies has sales of $3,000,000. The company’s fixed operating costs total $500,000 and its variable costs equal 60% of sales, so the company’s current operating income is $700,000. The company’s interest expense is $492,284. What is the company’s degree of financial leverage (DFL)?
