Singh Co. reports a contribution margin of $960,000 and fixed costs of $720,000. (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of income will Singh Co. expect?

Q: Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84,000. If…

A: Net operating Income= (Sales- Variable cost)-Fixed expenses = Contribution- Fixed expenses…

Q: Spice Inc.'s unit selling price is $51, the unit variable costs are $38, fixed costs are $102,000,…

A: Formula: Contribution margin = Selling price - variable cost

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: Munna Corporation is a single-product company that expects the following operating results for next…

A: Total contribution margin = Sales*Contribution margin ratio Degree of operating leverage =…

Q: Ionic Charge is a newly organized manufacturing company that plans to manufacture 60,000 units per…

A: Operating income: Income earned by business organizations after deducting all expenses is called…

Q: Frontier Corp. has a contribution margin of $1,458,000 and profit of $364,500. If sales increase…

A: Definition:   Gross Profit: Gross Profit is the difference between the net sales and the cost of…

Q: Suppose ABC Corp’s break-even point is revenues of $1,100,000. Fixed costs are $660,000   a.…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: For its most recent fiscal year, a firm reported that its contribution margin was equal to 40…

A: The question is based on the concept of Cost Accounting.

Q: t is observed that the fixed cost of the new product is $35,000 and the variable cost per unit is…

A: 1) Revenue Function = 5,000D - 100D^2 2) Cost function = $35,000 + D*$500 =35,000+ 500D 3) Profit…

Q: NUBD Co. incurs annual fixed costs of P250,000 in producing and selling a single product. Estimated…

A: Solution:- Calculation of  variable costs per unit  as follows under:- Introduction:- The following…

Q: Ionic Charge is a newly organized manufacturing business that plans to manufacture and sell 60,000…

A:

Q: At a level of 20,420 units sold, Lee Corp. has sales of $653,600, a contribution margin ratio of…

A: Contribution =Sales×Contribution margin ratio=$653,600×58%=$379,088

Q: The X Corp income statement resembles the following after 35,000 units were sold in 2020.  Sales =…

A: Break-even point indicates a point of sales wither in units or dollars where the company will only…

Q: Jakara Company is a service firm with current service revenue of $400,000 and a 40% contribution…

A: In order to determine the degree of operating leverage, the contribution is required to be divided…

Q: (1) Compute the company’s degree of operating leverage. (2) If sales increase by 15%, what amount of…

A: Contribution is usually defined as Sales minus the variable costs of an organization The degree of…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales $290,900…

A: Degree of operating leverage (DOL): DOL Reflects an organization's variable and fixed cost…

Q: NUBD Co. incurs annual fixed costs of P250,000 in producing and selling a single product. Estimated…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: In its first year of operations, a firm had P50,000 of fixed operating costs. it sold 10,000 units…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Assuming that the company has a current sales of $120,000 with a 25% margin of safety. Its…

A: Break even sales = Fixed cost/contribution  ratio

Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000…

A: Beak Inc. Bryant Inc. Sales $12,50,000 $20,00,000 Variable costs -$7,50,000 -$12,50,000…

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: Last year, the contribution margin ratio of Lamesa company was 30%. this year, fixed costs are…

A: Contribution margin is the amount of revenue remaining after covering variable cost.

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: Orion Inc., is a newly organized manufacturing business that plans to manufacture and sell 30,000…

A: Contribution is the difference between the sales price and variable cost Contribution = Sales -…

Q: A firm has the capacity to produce 599,374 units of a product each year. At present, it is operating…

A: Break-even point:- Break-even point is defined as the point on which the cost of production is equal…

Q: Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is…

A: New sales = Current sales + Current sales x 10% = $11700,000 + $11700,000 x 10% = $12,870,000 New…

Q: Casper Inc. is a newly organized manufacturing business that plans to manufacture and sell 30,000…

A: Lets understand certain terms here. Break even point is a point at which no profit/no loss condition…

Q: Adams, Inc. has sales of $100,000 with contribution a contribution margin of $60,000 and net income…

A: What is meant by Contribution Margin? Contribution is nothing but the difference between sales…

Q: Frontier Corp. has a contribution margin of $648,000 and profit of $162,000. If sales increase 18%,…

A: In order to determine the percentage increase in profit, the degree of operating leverage is…

Q: Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the…

A:

Q: Casper Inc. is a newly organized manufacturing business that plans to manufacture and sell 30,000…

A: Here in this question, we are required to calculate break even point. Break even point is a point at…

Q: A company can generate a maximum sales of 825,000 a year. The variable cost ratio to sales is 55%…

A: Variable cost ratio = 55% So. Contribution margin ratio = 45%   Desired sales = (128,430 + 168,570)…

Q: In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32 dollars per…

A: The contribution margin per unit is calculated as difference between selling price and variable cost…

Q: Discuss the materiality concept. Is the dollar amount that is material the same for a company that…

A: Materiality concept: The accounting concept which focusses that all the financial items and figures…

Q: Beck Inc. and Bryant Inc. have the following operating data:   Beck Inc. Bryant Inc. Sales…

A: Operating leverage is a ratio of how of change in sales effect the change in operating income. It…

Q: Peterson Manufacturing is evaluating two different operating structures which are described below.…

A: answar 1.(x)  EBIT and EPS in both the structures Operating structure 1   10000 units 20000 units…

Q: Cebu Tires and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At…

A: The sales volume refers to the quantity of merchandise and the break-even sales volume is the…

Q: Harley Company has sales of $500,000, variable costs are 75% of sales, and income from operations is…

A: Operating leverage is a method of measuring the degree to which a firm can increase its operating…

Q: Gorilla, Co. provides two products, M and W. M accounts for 60 percent of total sales, variable cost…

A: Before finding the sales for targeted profit, we will first have to find the company level variable…

Q: Snower Corporation sells product G for $150 per unit, the variable cost per unit is $105, and the…

A: Introduction:- Snower Corporation sells product G for $150 per unit variable cost per unit is $105…

Q: If selling price per unit is $30, variable costs per unit are $20, total fixed costs are $10,000,…

A: Net income - It is also known as net profit, it is the amount that is left after deducting all the…

Q: Maverick Technologies has sales of $3,000,000.  The company’s fixed operating costs total $500,000…

A: Degree of financial leverage (DFL) = Earnings before interest and tax / earnings before tax

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…

Q: Orion recently reported sales revenues of S800,000, a total contribution margin of $300,000, and…

A: Introduction: Variable cost: The cost which is not fixed in nature. Variable cost varies according…

Q: Information concerning a company's products is as follows: Sales, $300,000; Variable costs,…

A: Answer) Calculation of Net Operating Income if Sales is $ 375,000 Net operating Income = (Sales X…

Q: Bulldogs Inc. has sales of P4,500,000, variable costs equal 75% of sales, and a fixed interest costs…

A: Sales = P4,500,000 Variable cost = 75% Contribution = Sales*(1-Variable cost ratio)…

Q: D&R Corp. has annual revenues of $262,000, an average contribution margin ratio of 33%, and fixed…

A: Operating income is a measure that shows how much of a company's revenue is transformed into…

Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $330,700…

A: Operating leverage is used by the organization to determine its break-even point. It helps the…

Q: Colin Company manufactures a single product. In the prior year, the company had sales of P90,000,…

A: Sales P90,000 Variable costs -P50,000 Contribution Margin  P40,000 Fixed costs -P30,000…