If a firm has a contribution margin of $58,398 and a net income of $12,000 for the current month, what is their degree of operating leverage?
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- 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 5.7A firm’s contribution margin ratio is 18.4%. If the degree of operating leverage is 15.6 at the $223.1k sales level. Given this information, calculate the firm’s net operating income.9)If a company's contribution margin ratio is 0.40, targeted operating income is $80,000, and targeted sales volume in dollars is $500,000, then the operating leverage factor is how much?
- Company A has current sales of $10, 337, 376 and a 48% contribution margin. Its fixed costs are $2,242,728. Company B is a service firm with a current service revenue of $6,907, 643 and a 18% contribution margin. Company B's fixed costs are $620, 046. Using the degree of operating leverage for Company A, what will be the increase to net income if there was a 21% increase in sales? Round to the hundredth, two decimals.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?BR Company has a contribution margin of 16%. Sales are $446,000, net operating income is $71,360, and average operating assets are $132,000. What is the company's return on investment (ROI)?
- Jakara Company is a service firm with current service revenue of $400,000 and a 40% contribution margin. Its fixed costs are $80,000. Maldives Company has current sales of $6,610,000 and a 45% contribution margin. Its fixed costs are $1,800,000. a. Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why. b. Illustrate your findings in an Income Statement that is increased by 15%.Suhar company is a levered firm generate a contribution margin of its sales was OMR (75) thousand. The company spend OMR (30) thousands yearly of the operating fixed costs and paid OMR (10) thousands yearly of an interest. Calculate the degree of total leverage.Shalom Company provided you the following data: Net operating income Total liabilities Contribution margin Average operating assets Sales 150,000 350,000 400,000 750,000 800,000 What is the return on investment?
- Assuming that the company has a current sales of $120,000 with a 25% margin of safety. Its before-tax return on sales is 6%, and its tax rate is 40%. What is the company's total fixed costs?A company can generate a maximum sales of 825,000 a year. The variable cost ratio to sales is 55% and fixed costs are 128,430 a year. The desired net income for the year is 168,570. At what percentage capacity level should the company operate to realize the desired net income?A company has return on sales of 15% at sales of $400,000. Its fixed cost are $90,000; variable costs are $25 per unit. A. What are sales in units? Why? How? B. What is contribution margin per unit? Why? How? C. What is income? Why? How?