Take me to the textThe Kandy Shop has an operating profit of $27,000.a) Calculate the degree of operating leverage for each of the independent cases (assuming operating profit is held constant):LContribution Margin is $52,000CM ratio is 51% and revenue is $150,000.ii. Selling price per unit is $39, variable costs per unit are $8 and it sold 3.100 units.Do not enter dollar signs or commas in the input boxesRound contribution margin and operating income to the nearest whole number. Round the degree of operating leverage to 2 decimal placesLR.HIContribution Margin Operating Profit Degree of Operating Leverage$$$SSb) Which scenario has the largest degree of operating leverage?Scenario:W

Degree of operating leverage is one of the important calculation done in cost volume profit…

Answered: Take me to the text The Kandy Shop has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Company XYZ is producing and selling 2,500. At this level, the selling price per unit is $10, the variable expenses per ?unit is $6, and fixed expenses are $1,500. How much is the profit $13,500 a O $8,500 .b O $16,000 .c O $11,000 .d O $6,000 .e O
Kaya Ltd gives the following figures: Margin of Safety 3,75,000 Total Cost 3,87,500 Margin of Safety (Qty.) 15,000 units Break Even Sales in Units 5,000 units You are required to calculate: () Selling price per unit (i) Profit (i) Profit/ Volume Ratio
Northpoint Company sells several products. Information of average revenue and costs are as follows: (Final answer must be DOUBLE RULE) $30.00 Selling price per unit Variable costs per unit: Direct materials $6.00 Direct manufacturing labor $2.60 Manufacturing overhead $3.40 Selling costs $5.00 y Annual fixed costs $126,000 Tax Rate 35% 1. Compute for the breakeven point in Units and Pesos. 2. How much is the selling price per product to earn an after tax income of $93,000 assuming that the company sold 45,000 units? (round it to whole number) 3. Calculate the Sales required to earn a gross income of $110,000. 4. Assuming the Tax rate is 40% and the fixed cost is increased by 25%, if the company wants to earn after tax income of $150,000, how many units must be sold?
A certain company sells its product at (45 – 0.08x) pesos per unit. Variable cost per unit is P 25 while fixed cost is P 1,200. a. Find the break-even quantity and revenue b. Find the maximum point c. Find the profit at a sale of 120 units.
A business has selling price of P 129.50 with an average variable cost of P 54.40. Fixed costs are P 1,400,000. Calculate the following: What is the breakeven sales revenue? Use 2 decimal places in computing CM Ratio (Answer the figures only; no decimal places)
Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company's monthly fixed expense is $32,000. Required: 1. Calculate the unit sales needed to attain a target profit of $7,100. Note: Do not round intermediate calculations. 2. Calculate the dollar sales needed to attain a target profit of $9,200. Note: Round your intermediate calculations to the nearest whole number. 1. Units sales to attain target profit 2. Dollar sales to attain target profit units
REQUIRED Use the information provided below to answer the following questions independently: 3.2.1 If Kempster Limited decides on a profit objective of R400 000, calculate the target sales volume. 3.2.2 Calculate the total Marginal Income and Profit/Loss if the company decides to reduce the selling price to R28 per unit. INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R 30 each: Variable manufacturing cost R14 per unit Fixed manufacturing cost R100 000 Variable marketing cost 20% of sales Fixed marketing and administrative cost R40 000
SEH Al-Manar Company sells one product at a price of 20 dinars per unit. The company's latest income statement revealed sales of .. 1 unit and variable costs of .. 3 dinars and fixed costs of . 4 dinars if a decrease in ..... ..... the selling price by 4 dinars leads to an increase in the unit sales volume by 20%, You will face the company 1. A decrease in the profit of 2000 dinars .2- A decrease in the profit of 3000 dinars 3- A decrease in the profit of 4000 dinars 4- All answers are incorrect
Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $327. Variable cost per unit $181 Units sold 431 Fixed costs $7,486 Interest expense $12,408 Based on the data above, what is the degree of financial leverage of Rat Race Home Security, Inc.?
Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company's monthly fixed expense is $32.100. Required: 1. Calculate the unit sales needed to attain a target profit of $4,750. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9.000 (Round your intermediate calculations to the nearest whole number) 1. Units sales to attain target profit 2. Dollar sales to attain target profit
Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. The company's monthly fixed expense is $31,650. Required: 1. Calculate the unit sales needed to attain a target profit of $5,750. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,900. (Round your intermediate calculations to the riearest whole number.) |1. |Units sales to attain target profit units 2. Dollar sales to attain target profit
Company XYZ produces and sells 4,000 units.at this level, the company is making a profit of $10,000. Assuming total ?fixed expenses of $3,000 and variable expenses per unit of $0.75, how much was the selling price per unit 6 .a O 3 b O 8.c O 1 d O 4 e O

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