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.
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- ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+The Frame Shoppe reported the following information:Contribution margin per unit TL 90Contribution margin TL 3,500Operating income TL 1,500 Compute the degree of operating leverage at the Frame Shoppe.Jilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook Show Me How Contribution Margin Ratio a. Young Company budgets sales of $1,280,000, fixed costs of $66,200, and variable costs of $294,400. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 52%, sales were $682,000, and fixed costs were $262,430, what was the operating income? Check My Work 2 more Check My Work uses remaining, B Previous Next
- * CengageNOWv2 | Online teachin x now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $182,500 10 Selling expenses: Sales salaries and commissions 37,900 4 Advertising 12,800 Travel 2,900 Miscellaneous selling expense 3,100 4 Administrative expenses: Office and officers' salaries 37,100 Supplies 4,600 2…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 ofTom 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
- Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Sales Variable costs Contribution margin Fixed costs Operating income a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. Bryant Inc. Beck Inc. Bryant Inc. $216,400 $576,000 (86,800) (345,600) $129,600 $230,400 (75,600) (86,400) $54,000 $144,000 b. How much would operating income increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number. Beck Inc. Bryant Inc. Dollars Percentage % % c. The difference in the of operating income is due to the difference in the operating leverages. Beck Inc.'s operating leverage means that its fixed costs are a margin than are Bryant Inc.'s. percentage of contributionIdentification of variable, semi-variable, and fixed costs.*Provide total VC/unit, total FC, and Semi-VC here as well. q 1. Breakeven in units. q 2. Breakeven in Sales q 3. Units including Target profit q 4. Income statement as at Dec.31, 202x V&A Carpet cleaning (Finney Franchise) based on units from Q3 with target profitPLEASE USE THIS TIME TO ANSWER THIS. AYAW NA PAGHULAT UG DEADLINE, TOMORROW IS ANOTHER DAY. PLEASE DEFINE AND GIVE THE FORMULA OF THE FOLLOWING (IF THERE IS ANY): PLEASE ANSWER HERE DIRECTLY 1. absorption costing 2. activity bases (drivers) 3. break-even polnt 4. contributlon margin 5. contributlon margin ratlo 6. cost behavlor 7. cost-volume-profit analysls 8. cost-volume-profit chart
- he words a Sudi Use the following information to calculate the company's operating leverage, finan- ada bus EXERCISE 9: LEVERAGE CALCULATIONS brob cial leverage, and combined leverage: Sales volume Price per unit Variable costs (per unit) Fixed costs Interest Corporate income tax rate 100,000 units 11.30 moll 8.30 si diwory on $ $ $100,000 $ 25,000 40% EXERCISE 10: LEVERAGE CALCULATIONS Using the data in Exercise 9, assume that the company wants to make its plant more automated and is able to reduce the variable costs to $7.30 per unit, increase the fixed costs by $100,000 (i.e., to $200,000), and increase the finance costs from $25,000 to $35,000. Issigns Question 6: COST OF CAPITALA ENT Calculate the new operating leverage, financial leverage, and combined leverage.Your manager would like you to conduct sensitivity analysis to see how changing both the price and unit cost of a product affect profits. The following data is provided to you. Which of the following actions needs to be completed before building a data table? 26 27 Price 28 Demand 29 Unit cost 30 Fixed cost 31 Revenue 32 Variable cost 33 Profit B с 50.00 28,000.0 12.00 D E Copied Cells 50.0 62,000.0 1,400,000.0=C28 C27 336,000.0=C28 C29 1,798,000.0 SUM(C31,C32.C30) Select one: The incorrect cells have been 'copied' and this will result in a 12.0Explain the terms break-even point and margin of safety as used in cost-volume-profit (CVP) analysis in short term decision marking. b) Kack Ltd is a company which uses cost-volume-profit analysis for planning and control decisions. You have been given the following information for the just ended operational period: Total revenue GH¢3,600,000 The annual total cost GH¢3,510,000 Variable cost GH¢2,700,000 Required: As the Management Accountant, calculate the following for the use of management in decision making for the forthcoming period: i) Variable cost/sales ratio. (1 mark) ii) Contribution/sales (C/S) ratio. iii) Break-even sales (in value). ( iv) Margin of safety (in value). (1 mark) v) Margin of safety (in percentage). vi) The sales value which would yield a profit of GH¢270,000 assuming the C/S ratio and fixed costs remain unchanged. vii)The sales value which would yield a profit of 15% of that sales assuming the C/S ratio and the fixed costs remain unchanged. viii)…
