Alpha Corporation reported the following data for its most recent year: sales, $670,000; variable expenses, $420,000; and fixed expenses, $200,000. The company's degree of operating leverage is closest to: Multiple Choice O 5.00 2.70 2.00 13.00
Q: On January 1, 2020, Firm ABC (lessor) leased a building to Firm XYZ (lessee). The relevant…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: Use the following information of VPI Company to prepare a statement of cash flows for the year ended…
A: Cash Flow:Cash Flow analyses the cash inflow and cash outflow during a particular period.The cash…
Q: Sandhill Company is considering two alternatives. Alternative A will have sales of $157.300 and…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: The following is an extract from the statements of financial position of Carp plc as at 31 December…
A: The cash flow statement is prepared to record cash flows from various activities during the period.…
Q: Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a…
A: Cost of assets is the amount paid for an asset and for expenses incurred to putting the asset in…
Q: A fast food restaurant has 125 seats, an average check of 3.00, a daily seat turnover of 2.5 and the…
A: Budget means the expected value of future. Budget will be compared with actual value and variance is…
Q: 7. Recognize cash flow from personal tax returns and other data APFS48. John and Mary Customer have…
A: Cash flow refers to the receipt and payment of cash. Thus, cash flow can be categorized as cash…
Q: Sacco Industries manufactures a popular interactive stuffed animal for children that requires three…
A: Direct material purchase budget :— This budget is prepared to estimate the number of unit and cost…
Q: Diehl Corporation uses an activity-based costing system with three activity cost pools. The company…
A: The indirect costs are the costs that are not related directly to the production. The indirect costs…
Q: Mack Precision Tool and Die has two puction departments, Fabricating and Finishing, and two service…
A: The step method takes into account the fact that different service departments may need different…
Q: James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2…
A: Direct Material Usage Variance measures the difference between the actual quantity of materials used…
Q: 1) Doon Company incurred the following costs while producing 560 units: direct materials, $9 per…
A: Variable costing method is a method of costing in which product cost is calculated by adding direct…
Q: Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon…
A: Depreciation is a non-cash expense that is incurred due to physical wear and tear, obsolescence or…
Q: John and Joseph were in business for several years, sharing profits and losses equally. Because of…
A: A partnership business can get dissolved due to multiple reasons and can even be dissolved at the…
Q: [The following information applies to the questions displayed below] At December 31, Hawke Company…
A: ALLOWANCE FOR DOUBTFUL DEBT ACCOUNT Allowance for Doubtful Debt Account is Considered as Contra…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: Estimating how much money a company expects to earn in the future from sales or Froaccounts…
Q: Blossom News Manufacturing, Inc. has the following information available for September 2022. Unit…
A: Lets understand the basics.CVP income statement means the cost volume profit income statement…
Q: The following data relates to Spurrier Company's budgeted amounts for next year. Budgeted Data:…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: Loss from discontinued operations, net of tax Income tax expense Other selling expenses Net sales…
A: Mahahan CompanyOperating income statementFor the year ended December Net Sales $ 7,25,000…
Q: At January 1, 2022, Royal Industries reported Retained Earnings of $350,000. During 2022, Royal had…
A: When a company has a surplus cash flow, it may issue dividend to its equity shareholders. Dividend…
Q: The following selected account balances were taken from ABC Company's general ledgers for July:…
A: Net income is the excess value of sales revenue over the total expenditure. This term is used while…
Q: in December, Northern Kiteboarding magazine collected $80,000 for subscriptions for the next…
A: As per the accounting standard (IFRS 15) revenue from contracts with customers which is based on 5…
Q: A leading beverage company sells its signature soft drink brand in vending machines for $0.89 per 12…
A: Contribution margin per unit refers to the difference between the sales price per unit and the…
Q: Facey Company manufactures lawnmowers in the Kitchener location. A new manager just joined the team.…
A: The high-low method is used to differentiate the mixed costs. Mixed cost is the combination of fixed…
Q: Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.01 Variable…
A: Break-even analysis is a technique employed in the fields of financial and managerial accounting to…
Q: Torres Corporation (a U.S.-based company) expects to order goods from a foreign supplier at a price…
A: Expects to order goods from a foreign supplier at a price of 100000 pounds payment to be made on…
Q: xxx are sells windows (80% of sales) and doors (20% of sales). The selling price of each window is…
A: The break-even point indicates that total units are to be sold by the business entity to recover its…
Q: Example Suppose that in an inventory of 10 items, 15% of the items account for 80% of the sales…
A: It is one of the key assets of the company. It comprises raw materials, inventory in processing and…
Q: The General Fund of the Town of Mashpee transfers $115,000 to the debt service fund for a $100,000…
A: Interfund transfers are transactions in which funds are moved from one financial fund to another…
Q: The Guitar Shoppe reports the following sales forecast: August, $130,000; and September, $260,000.…
A: A schedule for cash receipts is prepared before preparing a cash budget. It is part of the cash…
Q: Kootenay Mining Company purchased a mine in 2019 for $3,400,000. It was estimated that the mine…
A: An intangible asset seems to be one that does not have a physical form. Intangible assets include…
Q: A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED…
A: Statement of cash flow is a financial statement that includes inflow and outflow of cash during the…
Q: Marin Shed Solutions sells its largest shed for $1,100 plus HST of 13 %. On May 10, 2024, it sold 26…
A: When a sale happens, HST is payable on the sale revnue. In this case the HST rate is 13%. HST…
Q: Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $321,300 on…
A: Consolidation process is for external reporting purposes in order to show two standalone entities as…
Q: WP Corporation produces products X, Y, and Z from a single raw material input in a joint production…
A: The incremental revenue is the additional revenue earned from the sale of the product. The further…
Q: Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash…
A: ALLOWANCE FOR DOUBTFUL DEBT ACCOUNTAllowance for Doubtful Debt Account is Considered as Contra Asset…
Q: 22. Laine, a tipped employee, reported to her employer that she had received $310 in tips during…
A: OASDI tax, commonly known as Social Security tax, is a payroll tax that provides benefits to retired…
Q: Information below is for the production and sale of 5,000 units for this year. The sales price is…
A: Lets understand the basics.Contribution margin is a margin generated on sales. It is derived by…
Q: For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation…
A: A change in depreciation method is considered to be a change in accounting estimate. This type of…
Q: Assume that a company has two cost drivers-number of courses and number of students. The planned…
A: A flexible budget is a financial plan that adjusts for varying levels of activity, allowing a…
Q: Thoro Clean, a firm providing house-cleaning services, began business on April 1. The following…
A: Journal entries are recorded as per accounting rules. A journal entry may be recorded by debiting or…
Q: Stone's gross pay for the week is $1,400. Stone's year-to-date pay is under the limit for OASDI.…
A: Payroll tax refers to any tax that is withheld from, levied against, or assessed against an…
Q: Which of the following accounts is not reported in inventory? Select one: O a. Finished goods. O b.…
A: Inventory is the amount of stock which is used in manufacturing of product or to sells. There are…
Q: More Parts Liquidators specializes in buying excess parts inventories to resell or to Incorporate…
A: The purpose of incremental analysis is to help people make better decisions by recognizing the…
Q: (Corporate income tax) The Hobbi interest of $224,000 and its cash operating expenses were $102,000.…
A: According to the question given, we need to compute the tax liability of a company. Tax…
Q: st Pool Estimated Use of Driver 800 200000 2000 Cost $1350000 1350000 600000
A: Activity Based costing is a method that assigns cost of each acitivuty to the products based on the…
Q: Techuxia Corporation worked on four jobs during October Job A256, Job A257, Job A258, and Job A260.…
A: The cost of goods sold includes the cost of goods that are sold during the period. The ending WIP…
Q: The records of Simon Company show the following for February: Standard labor-hours allowed per unit…
A: Direct labor variance is the difference between standard direct labor cost for actual production…
Q: Flint Co. records purchase discounts lost and uses perpetual inventories. Prepare journal entries in…
A: The net method of inventory purchases accounts for only the actual cost of inventory received,…
Q: Jordan Company calculated its return on investment as 10 percent. Sales are now $390,000, and the…
A: Return on investment is calculated by dividing operating income by average operating assets.…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- The statement of comprehensive income of Blanche Company for the current year is presented below (refer to the attached picture): What is the degree of operating leverage of Blanche Company? sales 400,000 variable costs 125,000 contribution margin 275,000 fixed cost 200,000 income before tax 75,000The following information relates to Zinc Corporation for last year: Sales Revenue ($500,000), Net Operating Income ($25,000) and Degree of Operating Leverage (5). Sales at Zinc are expected to be $600,000 next year. Assuming no change in cost structure, this means that net operating income for next year should be: O a. $45,000 b. $125,000 O c. $30,000 O d. $50,000Alpha Corporation reported the following data for its most recent year: sales, $1,000,000; variable expenses, $600,000; and fixed expenses, $300,000. The company's degree of operating leverage is closest to: Multiple Choice о О 20 3.3 0.25 о 4.0
- The CVP income statements shown below are available for Blossom Company and Crane Company. Blossom Co. $600,000 320,000 Sales revenue Variable costs Contribution margin Fixed costs Operating income (a1) Blossom Co. Calculate the degree of operating leverage for each company. (Round answer to 2 decimal places, e.g. 15.25.) Crane Co. 280,000 180,000 $100,000 Save for Later Crane Co. $600.000 120,000 480,000 380,000 $100,000 Operating leverage Attempts: 0 of 1 used Submit AnswerMelb Corporation reported the following data for its most recent year: sales, $570,000; variable expenses, $270,000; and fixed expenses, $240,000. The company's degree of operating leverage is closest to:Phelps Glass Inc. has reported the following financial data: net revenues of $10 million, variablecosts of $5 million, controllable fixed costs of $2 million, noncontrollable fixed costs of $1 million,and nontraceable costs of $500,000.What are the controllable margin, CPC, and operating income, respectively?a. $5,000,000; $3,000,000; $500,000b. $2,000,000; $1,500,000; $500,000c. $3,000,000; $2,000,000; $1,500,000d. $1,000,000; $2,000,000; $1,500,000
- The following income statement applies to Finch Company for the current year: Income Statement Sales revenue (480 units × $30) $ 14,400 Variable cost (480 units × $15) (7,200 ) Contribution margin 7,200 Fixed cost (4,000 ) Net income $ 3,200 Required a. Use the contribution margin approach to calculate the magnitude of operating leverage. b. Use the operating leverage measure computed in Requirement a to determine the amount of net income that FinchConsider the following summary modified income statement for Tech Inc.: Sales $593,000 Variable Operating Costs 252,000 Contribution Margin $341,000 Fixed Operating Costs 121,000 Operating Income $220,000 Interest Expense 26,000 Net Income $194,000 Calculate Tech's degree of operating leverage. A В C E 1 2 Degree of Operating Leverage = 4 5 7 8 9 10 3. 6.The CVP income statements shown below are available for Armstrong Company and Contador Company. Armstrong Co. Contador Co. Sales $494,000 $494,000 Variable costs 233,000 45,000 Contribution margin 261,000 449,000 Fixed costs 161,000 349,000 Net income $100,000 $100,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, eg. 1.15.) Degree of Operating Leverage Armstrong Contador (b) Assuming that sales revenue increases by 10%, prepare a variable costing income statement for each company. Armstrong Company Contador Company > > > > >
- 請 RequIred Informatlon (The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,00e Sales Variable expenses Contribution margin Fixed expenses 000 1,630,000 Net operating income Average operating assets $ 1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses. 000 50% of sales $161,000 The company's minimum required rate of return is 15%. 11. What is last year's residual income? Residual income, < Prev 11 12 13 of 15 Nex to search 近Lewis Company has operating income of $265,000. Its return on investment (ROI) is 53%, while its target rate of return is 7%. The total assets of Lewis Company may be closest to O A. $140,450. O B. $3,785,714. O C. $18,550. O D. $500,000If 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
