Q: 4. Dynamic Corp. had sales of P1,500,000, fixed costs of P400,00 and variable cost of P900,000.…
A: Break even sales is that point at which fixed cost is equal to the contribution margin and there is…
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: The following sales and cost data (in thousands) are for two companies in the transportation…
A: The degree of operating leverage is used to measure how much operating income is sensitive to sales.…
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A: Operating leverage is a cost-bookkeeping recipe that quantifies how much a firm or undertaking can…
Q: ) Scully Company incurs variable costs of 65% of sales and fixed costs of $276,640. If the company's…
A: Break-even analysis is a technique used widely by the production management. It helps to determine…
Q: 1)How much is the total variable operating cost at 150,000 sales volume? 2)What is the volume of…
A: Total Variable Cost = Quantity Sold x Variable Cost Per Unit Break Even Volume (No Profit No Loss…
Q: A business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P…
A: Solution: Selling price per unit = P129.50 Variable cost per unit = P54.40 Contribution margin per…
Q: Are operating leverage Beck Inc. and Bryant Inc. have the following operating data back Inc. sales…
A: Operating Leverage: It's a metric for determining how resilient net operating income is to a jump in…
Q: Marcus Corporation currently sells 150,000 units of products a year at a price of RM 4.00 per unit.…
A: The degree of operational leverage (DOL) is a ratio that determines how a company's operating income…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $346,400…
A: Operating leverage is calculated as contribution margin divided by operating income.
Q: Given the following financial data for Cosmos, compute the firm's degree of combined leverage.…
A: Combined leverage is a leverage combination of both operating and financial leverage. It refers to…
Q: At a base sales level of R400,000, a firm has a degree of operating leverage of 2 and a degree of…
A: Sales level = R400,000 Degree of operating leverage = 2 Degree of financial leverage = 1.5
Q: The following information pertains to Splash Brothers’ Corporation: Sales margin 25%…
A: Sales margin = 25% Income = P80,000 Sales = Income/Sales margin = 80000/0.25 =…
Q: 1- If you know that net sales are 60,000, fixed expenses 20,000, and cost of sales 30,000, then the…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $238,500…
A: Degree of Operating leverage: It is a financial ratio. Sensitivity of operating income to sales is…
Q: If sales are $309,000, variable costs are 75% of sales, and operating income is $36,000, the…
A: Operating Leverage = Contribution Margin / Operating Income Operating Income is given, so we only…
Q: c. What is the degree of operating leverage at 23,000 bags and at 25.000 bags? (Round your answers…
A: Working 1. Variable cost = 50 x 0.25 per pound = 12.5 2. Sales Price = 20 3. Contribution margin per…
Q: Information for Duncan Corporation is shown below: 20X1 Net Income ₱ 400,000 Average…
A: Return on investment (ROI) = Net Income / Average Investment where, Average Investment = (Beginning…
Q: Compute the degree of financial leverage for a firm with EBIT of P6,000,000, fixed costs of…
A: Option A is the correct answer i.e 1.2
Q: A firm has sales of R40 million, total assets of R50 million and total debt of R9 million. The net…
A: Given: Sales = R40 Million Total assets = R 50 Million Total debt = R90 Million Net profit margin =…
Q: Based on the below data, compute for the Degree of Financial Leverage: Sales…
A: Formula: Degree of Financial Leverage = EBIT / EBT
Q: a. What is the company's variable cost ratio b. How much is fixed costs of the new BES level?
A: Break even point = Fixed cost/ PV ratio. PV ratio = Sales - Cost to volume ratio. In…
Q: f net profit of the firm is OMR 280,000 and capital employed is OMR 1,400, 000 the return on capital…
A: The question is based on historical and inflation costing.
Q: Information for Duncan Corporation is shown below: 20X1 Net Income ₱ 400,000 Average…
A: Sales margin = Net income / sales revenue where, Net Income = Total revenue - Total expenses
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: Company X is selling 5,000 units. At this level, the operating leverage is 2.5, while the profit is…
A: Operating leverage = contribution/profit before tax
Q: From the information provided in the table (i) Calculate EBIT, Fixed Cost, Variable cost and…
A:
Q: Mercantile Corporation has sales of $2000000, variable costs of $800000, and fixed costs of $90000O.…
A: Degree of operating leverage (DOL): DOL reflects variable and fixed cost relationship of an…
Q: Choose the correct letter of answer: In the current year, Company A had P15 Million in sales, while…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: ABC company sold products at total value of 500,000 $. The variable cost is 150,000 $ and the fixed…
A: Financial Leverage: Assets may be purchased with financial leverage. Leverage is used to boost the…
Q: If sales equal $320,960, variable expenses equal $200,000, and the degree of operating leverage is…
A: Solution.. Sales revenue = $320,960 Variable cost = $200,000 Contribution margin = Sales -…
Q: Natio What is NUBD's degree of operating leverage? * n Sample Format: 1.1 Below is an income statem…
A: Degree of operating leverage shows how much operating income of the business will change as a result…
Q: ABC company sold products at total value of 500,000 $. The variable cost is 150,000 $ and the fixed…
A: Financial leverage is a measure of the benefit of debt to fund the business. It is computed as the…
Q: Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales…
A: a.
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.
Q: Use the below information to answer the following question. Sales (1,000 units) $…
A: The degree of financial leverage (DFL) is a leverage ratio that determines how sensitive a…
Q: 14. Assume that the amounts of the company's total variable expenses and total fixed expenses were…
A: Degree of Operating Leverage=(Contribution margin/Net Operating Income) The contribution margin can…
Q: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant…
A: Operating leaverage = Contribution / Operating profit
Q: The sales and cost data for two companies in the transportation industry are as follows: X…
A: Degree of Operating Leverage (DOL) = (Sales - Variable Cost) / Operating Income = Contribution /…
Q: Given the following financial data for Cosmos, compute the firm's degree of combined leverage.…
A: Combined leverage is a leverage combination of both operating and financial leverage. It refers to…
Q: Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00…
A: The operating leverage is calculated as fixed cost divided by total cost.
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: 3. Assume that sales increase by P400,000 next year If cost behavis patterns remain unchanged, by…
A: Solution:- 2)Computation of Break-even point in units and sales as follows under:-
If the sales of business x are $ 150.000 , variable cost is $ 45.000 , fixed cost is $ 15.000 and EBIT is $ 30.000 , what is the operating leverage of this business ?
a.5
b.4
c.3
d.4,5
e.3,5
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- If 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. 4.7If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)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.
- 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?4. Dynamic Corp. had sales of P1,500,000, fixed costs of P400,00 and variable cost of P900,000. What would be the amount of the sales pesos at breakeven point? a. P1,000,000 b. P1,200,000 c. P1,500,000 d. P1,800,000 5. Refer to question No. 4. How much should the sales be in order to produce a net income of P300,000? a. P2,500,000 b. P2,250,000 c. P2,000,000 d. P1,750,000If sales are $325,000, variable costs are 75% of sales, and operating income is $45,600, what is the operating leverage? a. 1.3 b. 1.8 c. 0.0 d. 5.3
- Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00 Variable Costs = 75% of Sales Operating Income = $40,000.00 Group of answer choices a. 0 b. 7.500 c. 1.875 d. 1.333If 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.0.0From the information provided in the table (i) Calculate EBIT, Fixed Cost, Variable cost and Profit after tax for Company A and S as per financial data given below. (ii) Comment on the Operating and Financial risk for both the firms. Give reasons for your answer. Particulars A S Variable Expenses as a percentage of sales 75% 50% Interest Expense in Amount Rs. 300 1000 Degree of Operating Leverage 6 2 Degree of Financial Leverage 4 2 Income Tax Rate 35% 35%
- Assume company ABC’s only product is priced at K20 per unit and its variable costs amount to K15 per unit while fixed costs are K3,600.a. Compute the quantity required to achieve a profit of K2 per unit b. Define the term: Degree of Operating Leverage and how it can be computed c. What is the degree of operating leverage for this company at the level of output earning a profit of K3 per unit?For a sales level of 3,000,000; X Corp has DOL of 2x, DTL of 3x and CM ratio is 60%. Compute the Fixed cost. a• None of the above b• 1,200,000 c• 600,000 d• 900,000Q5. Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $330,700 $1,056,000 Variable costs (132,700) (633,600) Contribution margin $198,000 $422,400 Fixed costs (132,000) (246,400) Operating income $66,000 $176,000 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 20%? 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.
