At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 1.5. If sales increase by 20%, profits (net income) will increase by: a. 20% b. 1.5% c. 15% d. 30%
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At a sales level of $270,000, the magnitude of operating leverage for Donuts unlimited is 1.5.
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- O e. operating income will decrease. XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 5%, by how much will profits increase? O a. 15% O b. 90% 30% O d. 60% O e. None of the given answer is correct. NEXT PAGE AGE PoBerries Salad has current sales of RM10,000 and a profit margin of 5%. The firm estimates that sales will increase by 4% next year and all costs will vary directly with sales. What is the pro forma net income? Select one: a. RM500.00 b. RM420.00 c. RM405.60 d. RM520.00XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 30%, by how much will profits increase? O a. 15% O b. None of the given answer is correct. С. 30% d. 60% е. 90%
- XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 20%, by how much will profits increase? а. None of the given answer is correct. O b. 30% O c. 90% O d. 15% е. 60%Please help me with show all calculation thankuprice = 5.75 variable = 3.14 fixed costs = 57,500 if KFC has a 11.45% increase in sales, how much will its earnings per share (EPS) increase? Assume KFC produces 157,450 units and it has an annual interest expense of $47,750 A. 15.39% B. 14.76% C. 13.25% D. 12.59%
- If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5, then net income should increase by: A. 167%. B. 100%. C. 334%. D. 250%.Solemn Company has an operating leverage of 2.O. Sales for the current year are $100,000 with a contribution margin of $50,000. Sales are expected to be $150,000 next year. Operating income for the current year can be expected to increase by what amount over the previous year? O $25,000 O None of the above O $75,000 O $50,000Sales of Blistre Autos are 400,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company.A) 1.13 timesB) 3.54 times C) 1.35 timesD) 2.13 times
- Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income should increase by about: Multiple Choice O 7.3% 3.0% 21.9% 243.3%Wallace Industries has total contribution margin of $58,560 and net income of $24,400 for the month of April. Wallace expects sales volume to increase by 5% in May. What are the degree of operating leverage and the expected percent change in income for Wallace Industries? 0.42 and 2.2% 0.42and5% 2.4andl2% 2.Sandl3%LSB Company has the following income statement: Revenues $100,000 Variable Costs 40,000 Contribution Margin 60,000 Fixed Costs 30,000 Operating Income 30,000 If LSB's sales increase by $20,000, how much will the company's operating profit increase? A. $30,000 OB. $42,000 O C. $12,000 D. $50,000
