During the last accounting period, Carla Vista Corporation sold 96000 units at $45 each. The variable cost per unit was $20 per unit. Fixed costs totaled $1100000. What is the company's degree of operating leverage? 1.80 0.57 1.85 0.46
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- Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?During the last accounting period, Sheridan Corporation sold 92000 units at $45 each. The variable cost per unit was $20 per unit. Fixed costs totaled $1100000. What is the company's degree of operating leverage? 1.80 O 1.92 0.48 0.60A company produces and sells a product. The unit variable cost is $77.41 and the unit selling price is $137.56. The fixed cost associated with the product is $240,557 per year. The company has an income tax rate of 20.74 percent. dollars per year if the company The operating income is produces and sells 9,460 units per year. 로
- Spice Inc.'s unit selling price is $54, the unit variable costs are $40, fixed costs are $117,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,800 units? Oa. $81,200 increase Ob. $152,600 increase Oc. $233,800 increase Od. $152,600 decreaseSpice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? Oa. $228,200 increase Ob. $152,600 increase Oc. $152,600 decrease Od. $75,600 increaseThe Cartwright Company income statement revenue and per unit costs are as follows: Sales $100.00 Variable cost $38.00 Fixed cost $40.00 Operating Income $22.00 Interest $4.40 EBIT $17.60 If the company sells 600 units, what is the degree of operating leverage for the Cartwright Company? (round to two decimal places)
- Ulpik Inc. has variable operation costs of $10 per unit, a selling price of $75,50 per unit and fixed operating costs of $250,000. a) Calculate the operating breakeven point in units. b) Calculate the firm's EBIT at a level of units sold of 24,000; 28,000; and 30,000 units respectively. c) With 28,000 units as a base, what are the percentage changes in units sold and EBIT, as sales move from the base to the other levels used in part b)? d) Use the percentages computed in part c) to determine the degree of operating leverage (DOL).Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. a. Find the firm’s operating break-even point in units. b. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($),” and then graph the firm’s sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating break-even point and the areas of loss and profit (EBIT).Company XYZ produces and sells 40,000 units.at this level, the company is making a profit of $37,000. Assuming total fixed expenses of $3,000 and variable expenses per unit of $2, how much was the selling price per unit? O a. 8 O b. 3 C. 1 d. 6 e. 4 O O O O C
- The X Corp income statement resembles the following after 35,000 units were sold in 2020. Sales = $420,000 / $12 per unit Variable = $192,500 / $5.5 per unit Contribution Margin = $227,500 / $6.5 per unit Fixed Expense $110,000 Net Op Income $117,500 A. What is X Corp. breakeven point in units and dollars? B. What is X Corp. margin of safety in %, units, and dollars?Spice Inc.'s unit selling price is $47, unit variable costs are $32, fixed costs are $106,000, and current sales are 10,200 units. How much will income from operations change if sales increase by 5,300 units? Oa. $232,500 increase Ob. $153,000 decrease Oc. $153,000 increase Od. $79,500 increaseGojo Company's break- even sales are P528,000. The variable cost ratio is 60% while the profit ratio is 8%. Compute for the following: a. Fixed cost b. Sales c. Profit d. Margin of Safety e. Degree of operating leverage