The following data relate to a company that produces and sells a travel guide that is updated monthly: Fixed costs: Copy editing Artwork Typesetting Variable costs: Printing and binding Bookstore discounts Salespersons' commissions Author's royalties a. Higher than that for June. b. Not determinable. Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July. What is the degree of operating leverage for July? C. The same as that for June. d. Lower than that for June. $6,000 $2,000 $72,000 $3.20 per copy $4.00 per copy $0.50 per copy $2.00 per copy
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- Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the tour bus 4,000 miles and paid a total of $1,250 in March. In April, they paid $970 for 3.000 miles. What is the variable cost per mile if Able Transport uses the high-low method to analyze costs?Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. Markson made 10,000 copies and paid a total of $690 in January. In April, they paid $450 for 6,000 copies. What is the variable cost per copy if Markson uses the high- low method to analyze costs? If required, round your answer to two decimal places. Variable cost $ per copy
- The following information relates to BETTER BOOKS LIMITED, a publishing company. The selling price of a book is K15, 000 and sales are made on credit through a book club and invoiced on the last day of the month. Variable costs of production per book are Materials (K5, 000), Labour (K4,000), and Overhead (K2,000). The sales manager has forecast the following volumes Nov. Dec. Jan. Feb. Mar. April May June July Aug. No of books 1,000 1,000 1,000 1, 250 1,500 2,000 1,900 2, 200 2, 200 2,300 Customers are expected to pay as follows: □ One month after the sale 40% □ Two months after the sale 60% The company produces the books two months before they are sold and the creditors for materials are paid two months after production. Variable overheads are paid in the month following production and are expected to increase by 25% in April, 75% of wages are paid in the month of…Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Hamilton Air. Sunset’s fixed costs are $23,500 per month. Hamilton Air charges passengers $1,500 per round-trip ticket. Calculate the number of tickets Sunset must sell each month to (a) break even and (b) make a target operating income of $10,000 per month in each of the following independent cases. Q1. Sunset’s variable costs are $43 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Q2. Sunset’s variable costs are $40 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Q3. Sunset’s variable costs are $40 per ticket. Hamilton Air pays $60 fixed commission per ticket to Sunset. Comment on the results. Q4. Sunset’s variable costs are $40 per ticket. It receives $60 commission per ticket from Hamilton Air. It charges its customers a delivery fee of $5 per ticket. Comment on the results.North East printing produces posters of popular music groups for sale at concerts and festivals. The company has fixed expenses of $319,500 per month pla sells each poster for $9.50. North East has a target monthly income of $213,000. What is North East's operating leverage if it achieves its operating income OA. 4.0 OB. 2.5 OC. 0.4 O D. 1.0
- Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. A) What is the variable cost per copy if Markson uses the high-low method to analyze costs? B) What is the total fixed fee if Markson uses the high-low method to analyze costs? C) Using the answers from A and B, complete the equation: Total cost= + xbed Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $127.00 per service 89.00 per service 119,548 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? ook b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $32,604 after taxes? a Required sales in a year to break even int rences b. Required sales in a year to earn an annual operating profit of $32,604 after taxes: cleaning services cleaning servicesWhite Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?
- How do I compute the breakeven point in tickets and in sale dollars? Thrills sells tickets at $50 per person as a one day entrance fee. Variable costs are $28 per person, and fixed costs are $166,500 per monthGEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. GEM made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies. a) What is the variable cost per copy if GEM uses the high-low method to analyze costs? b) How much would GEM Ltd pay if it made 7,500 copies?CVP analysis, changing revenues and costs.</b> Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Hamilton Air. Sunset’s fixed costs are $23,500 per month. Hamilton Air charges passengers $1,500 per round-trip ticket. Calculate the number of tickets Sunset must sell each month to (a) break even and (b) make a target operating income of $10,000 per month in each of the following independent cases. Required: Sunset’s variable costs are $43 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Sunset’s variable costs are $40 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Sunset’s variable costs are $40 per ticket. Hamilton Air pays $60 fixed commission per ticket to Sunset. Comment on the results. Sunset’s variable costs are $40 per ticket. It receives $60 commission per ticket from Hamilton Air. It charges its customers a delivery fee of $5 per ticket. Comment on the results.