Assume the following information:SalesVariable expensesContribution marginFixed expensesNet operating income.The degree of operating leverage is:Multiple ChoiceOOActivity Cost PoolMachiningMachine setupsProduct designOOOOShow Transcribed TextMultiple Choice$205.0002.50.$225,0000.67.$198.0001.50.$249.0000.40.Assume a company manufactures only two products-14,000 units of Product A and 6,000 units of Product 8. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturingoverhead to three cost pools. The following additional Information is available for the company as a whole and for Products A and BActivity MeasureMachine-hoursNumber of setupsNumber of productsProduct A Product B9,000se1EstimatedOverheadCostActivity MeasureMachine-hoursNumber of setupsNumber of products.Using the ABC system, how much overhead cost would be assigned from the Machining cost pool to Product A?6,0001501$ 300,000$ 150,000$78,000Amount$ 300,000120,000180,00060,000$ 120,0003200 SetupsExpected Activity12,000 MH2 ProductsCPer Unit$4016$24

· Ratio analysis used to identify the business performance of the company.· It is used to measure…

Answered: Assume the following information: Sales…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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20 Sales Contribution margin Fixed costs (1) Compute the degree of operating leverage (DOL) for each company. (2) Which company is expected to produce a greater percent increase in income from a 10% increase in sales? Required 1 Required 2 $ 7,825,600 6,375,600 4,989,600 Complete this question by entering your answers in the tabs below. Skittles's DOL Starburst's DOL Compute the degree of operating leverage (DOL) for each company. Degree of Operating Leverage $ Contribution margin $ Numerator: $ 3,828,000 1,428,000 918,000 Answer is complete but not entirely correct. 6,375,600 1,428,000 I $ 1 $ Denominator: Income II 2,910,000 = = 2,836,000 = Ratio Degree of Operating Leverage 2.25 0.49
Tom Company reports the following data: Sales Variable costs Fixed costs Determine Tom Company's operating leverage. Round your answer to one decimal place. $156,332 81,532 30,800
We sell two products: Product #1 Product #2 Total Sales $200,000 $400,000 $600,000| Variable Expenses 120,000 350,000 470,000 Contribution Margin 80,000 50,000 130,000 CM Ratio 40% 12.5% 21.67% Fixed Expenses total $30,000. What is the breakeven point based on the current sales mix? A. $600,000 B. $75,000 C. $138,440 D. $240,000 4.
X Company Y Company Amount Percent Amount Percent Sales $ 148,000 100.00 $ 148,000 100.00 Variable costs 88,800 60.00 44,400 30.00 Contribution margin 59,200 40.00 103,600 70.00 Fixed costs 34,150 70,200 Operating income (Tig) 25,050 33,400 Y Company's margin of safety (MOS) in sales dollars (rounded) is:
Cost Volume Profit (CVP) Relationships (Algo) You are provided with the following data. Unit sales Selling price per unit Variable expenses per unit Fixed expenses Target Profit 80,000 units $70 per unit $ 28 per unit $ 2,688,000 $ 1,610,000 Required: Compute the CM ratio and variable expense ratio. Compute the break-even. Compute the target profit. Compute the margin of safety with the original data. Compute the degree of operating leverage with the original data. Use the Degree of Operating Leverage to determine the new Net Operating Income if sales increase by: 16% 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Skeeter Systems uses the following data in its Cost-Volume-Profit analyses: Sales Variable expenses Contribution margin Fixed expenses Net operating income O $80,000 What is total contribution margin if sales volume increases by 20%? O $158,400 O $200,000 Total $ 400,000 280,000 120,000 100,000 O $144,000 $ 20,000
QUESTION 6 You have information about 4 different companies below in the table. The variable and fixed costs are expressed as the percentage of revenue based on the current sales. The companies are otherwise very similar. Which of these companies is probably have the highest degree of operating leverage? A B с D Variable cost (%) 35% 27% 50% 80% 50% 60% 30% 5% Fixed cost O Project A O Project D O Project C O Project B
Compute the contribution margin ratio and fixed costs using the following data. Sales $4,600 Variable costs $ 2,944 Income $ 540 Less: Sales Variable cost Contribution margin Numerator: Fixed Cost 1 Contribution Margin $ Contribution Margin Ratio Denominator: 1 4,600 2,944 = Contribution Margin Ratio Contribution margin ratio 0
You are given the following• Total sales 40• Total fixed cost 2• Net profit 28 What is the TOTAL contribution margin?
Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per month
The sales and cost data for two companies in the transportation industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $ 150,000 100.00 $ 150,000 100.00 Variable costs 90,000 60.00 45,000 30.00 Contribution margin 60,000 40.00 105,000 70.00 Fixed costs 34,200 70,250 Operating income (πB) $ 25,800 $ 34,750 X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:
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. 1.333

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Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income The degree of operating leverage is: Multiple Choice O O O 2.50. 0.67. 1.50. 0.40. Amount $ 300,000 120,000 180,000 60,000 $ 120,000 Per Unit $ 40 16 $24