None SalesVariable expensesContribution marginFixed expensesNet operating income$ 369,000147,600221,40055,350$ 166,050The degree of operating leverage is closest to:

DOL measures the operational risk of a business.Operational risk implies the presence of a higher…

Answered: Sales Variable expenses Contribution…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Understanding CVP relationships Calculate the missing amounts for each of thefollowing firms: Contribution Variable Margin Fixed OperatingSales Costs Ratio Costs Income (Loss)Firm A $320,000 ? 32% ? $38,300Firm B ? $465,050 ? $118,000 71,950Firm C 134,000 ? 26% 36,700 ?Firm D ? 59,000 20% ? (4,920)
genow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... r Operating Leverage Teague Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $480,000 264,000 $216,000 175,200 $40,800 Income from operations Determine Teague Co.'s operating leverage. Round your answer to one decimal place.
Understanding CVP relationships Calculate the missing amounts for each of thefollowing firms:Units Selling Variable Costs Contribution Fixed OperatingSold Price per Unit Margin Costs Income (Loss)Firm A 11,200 $24.00 ? $100,800 $41,300 ?Firm B 8,400 ? $18.20 ? 64,500 $32,940Firm C ? 7.30 4.20 10,850 ? (6,750)Firm D 4,720 ? 51.25 41,064 48,210 ?
Remember: Gross profit = SP- CP Activity 1.2 enti Complete the following table: Table 1.2: Finding the cost price, the gross profit or the selling price No Cast price Gross prafit Selling price 1.2.1 R5 600 R8 700 1.2.2 R3 400 30% 1.2.3 R6 800 R12 700 1.2.4 R17 500 R35 000 The owner of an enterprise has to calculate both the gross and the net profit. A business has certain operating expenses thai must be deducied from the gross profit to get the net profit. Examples of operating expenses are: • Salaries Wages • Rent paid/rent expense • Advertisements • Stationery. The cost of advertising the business is one example of an operating expense. Gross profit minaş operating expenses equals net profit."
In the cost-volume- profit graph (above), what is represented by the point marked "A"? Question 1 options: Breakeven point Fixed expenses Operating income area Operating loss area
Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:
Operating Leverage Snellville Co. reports the following data: Sales Variable costs Contribution margin Fixed costs $897,700 (610,400) $287,300 (227,400) $59,900 Operating income Determine Snellville Co.'s operating leverage. Round your answer to one decimal place. Previous A Nex
Operating leverage Asha Inc. and Samir Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Asha Inc. Asha Inc. Samir Inc. $265,500 (106,500) $159,000 (106,000) $53,000 $ $ Operating income a. Compute the operating leverage for Asha Inc. and Samir Inc. If required, round to one decimal place. Asha Inc. Samir Inc. Samir Inc. b. How much would operating income increase for each company if the sales of each increased by 10% ? If required, round answers to nearest whole number. Dollars Percentage $781,000 (468,600) $312,400 (170,400) $142,000 c. The difference in the contribution margin than are Samir Inc.'s. % % of operating income is due to the difference in the operating leverages. Asha Inc.'s operating leverage means that its fixed costs are a percentage of
3. Compute the margin of safety. Margin of safety in dollars Margin of safety percentage 4. Compute the degree of operating leverage. Sales Variable expenses Contribution margin Fixed expenses Net operating income Degree of operating leverage $3,300 146.67%
Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income What is the margin of safety in dollars? Amount $300,000 120,000 180,000 60,000 $ 120,000 Per Unit $40 16 $24
In the cost-volume- profit graph (above), what is represented by the point marked "D"? Question 3 options: Operating loss area Operating income area Breakeven point Fixed expenses
Assume a company reported the following results: Sales $ 400,e00 Variable expenses Contribution margin Fixed expenses 260,e00 140,000 96,e00 Net operating income $ 44,000 Average operating assets $ 350, 000 The margin is closest to: Muitiple Choice 12.9%. 35.0%. 114.3%.

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Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 369,000 147,600 221,400 55,350 $ 166,050 The degree of operating leverage is closest to: