1. Which of the following shows the degree of operating leverage? The percentage change in the sales volume as the result of the percentage change in cost of the goods sold The percentage change in the net income as the result of the percentage change in the variable costs The percentage change in the sales volume as the result of the percentage change in the sales price The percentage change in the net inome as the result of the percentage change in the sales volume The percentage change in the operating income as the result of the percentage change in the sales volume

Q: What information is conveyed by a cost-volume-profit graph in addition to a company’s break-even…

A: Cost-volume-profit graph (CVP):   Cost-volume-profit graph is a graphical representation of volume…

Q: which of the following occurs if a company decreases its selling price per unit? a. net income…

A: The contribution margin is calculated as difference between sales and variable costs. The…

Q: Which of the following is an assumption of cost-volume-profit analysis? a. The inventory quantities…

A: Whereas fixed costs remain constant, variable costs change in proportion to the volume of…

Q: The margin of safety can be defined as the amount by which sales can decrease before losses are…

A: Total sales of a company can be divided into Margin of safety sales and break even sales.

Q: The ratio which indicates the profit that a company makes after paying variable costs of production…

A: Variable costs are those costs which changes with change in level of activity like all operating…

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: 6. What will be the impact on a company's profit if sales mix shifts between low margin and high…

A: Sales mix represents the proportion of sales of each product in relation with the total sales of the…

Q: 1. how would a cost volume profit analysis would be performed for a company that sells more than one…

A: Having an understanding of CVP analysis The breakeven point for various sales volumes and cost…

Q: Prepare an analysis of the sales quantity and unit price factors  did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

Q: Which are formulas for ROI? (check all that apply) Sales-Profit Margin Net Operating Income /…

A: Net operating income is the income generated by a company's operations after deducting operating…

Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group…

A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the…

Q: The degree of operating leverage Select one: O a. can be computed by dividing total contribution…

A: Leverage is the risk that a company bears.

Q: Return on investment (ROI) is computed in the following manner: ROI is equal to turnover multiplied…

A: Return on Investment (ROI) is a fundamental metric used by businesses to evaluate the profitability…

Q: What analysis ensures that the income for the firm will cover its variable costs?    a. ratio…

A: Companies need to analyse how many products to sell or how much sales to make in a financial year to…

Q: The degree of operating leverage (DOL) is interpreted as the ratio of the percentage change in net…

A:

Q: A manager who wants to determine the percentage impact on income of a given percentage change in…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Let P(x) be the annual profit for a certain product, where x is the amount of money spent on…

A: Solution- (A)  P(o) represents the amount of annual profit allocated when x=0 or when no money was…

Q: Below is the information on a project that you are evaluating for deciding on its worthiness as an…

A: The question is related sensitivity Anaysis. The details are given

Q: In the DuPont formula, return on assets equals: Multiple Choice Profit margin on sales x Inventory…

A: Return on assets is a method used to evaluate the profitability of the company. It also measures…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: To find: which of the following statement is true

Q: What can the weighted average contribution margin ratio be used for? To solve for a measure,…

A: The weighted average contribution margin ratio is a key financial metric that can be used for…

Q: On a traditional income statement, sales revenue less cost of goods sold equals   Question 26…

A: The income statement is prepared to find net income or losses incurred during the period.

Q: Operating leverage measures the: 1. Change in profit when sales changes 2. change in contrribution…

A: Leverage is another way to refer to debt. In business, Leverage often refers to borrowing funds to…

Q: For CVP analysis calculations, which of the following statements is correct? O A. In target profit…

A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Cost - volume - profit analysis  It is used to determine the changes in cost and volume of sales…

Q: Which of the following statement is CORRECT about the foundational assumption used in CVP analysis.…

A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write…

A: Selling price and sales volume have a direct relationship with the Gross profit i.e. increase in…

Q: Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on…

A: Cost volume profit analysis is designed for profit forecasting at varying levels of sale volume and…

Q: Fluctuations in unit volume, changes in unit price or unit cost of goods sold and modifications in…

A: The scenario mentions three potential changes that can occur within a business:Fluctuations in unit…

Q: The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Variable…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: What is economic surplus defined as? A) The total revenue earned by a firm B) The difference between…

A: The correct answer is: Option (B) The difference between total revenue and total costs Economic…

Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…

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

Q: Gross profit variance analysis can be used to study the effect of:" Changes in cost of goods sold on…

A: Gross profit variance refers to the variance that occurred to the amount of gross profit from the…

Q: Financial leverage indicates -

A: Financial Leverage: It is the use of debt capital for purchasing more assets. The company takes…

Q: How does good operating leverage magnify earnings results with modest revenue increase?

A: Operating Leverage: A cost-accounting technique called operational leverage assesses how much a…

Q: Degree of operating leverage (DOL) measures the sensitivity of OCF in response to changes of The…

A: We have formula,Degree of operating leverage(DOL) = % change in operating income/% change in sales

Q: what is the significance of break-even chart and profit volume chart

A: break even chart shows the point(the number of units to be sold) at which total revenue is equal to…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line…

A: Cost-volume-price (CVP) analysis is a way to find out how changes in variable and fixed costs affect…

Q: A company can use cost-volume-profit analysis to determine the level of sales required to earn a…

A: CVP Analysis Equation Profit = Revenue – Fixed Costs – Variable Costs