FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question

want answer please

Use the data given below.
Sales (30,000 units)
$150,000
Variable costs
100,800
Contribution margin
$49,200
Fixed manufacturing costs 24,000
Operating income
$25,200
Interest
18,000
Earnings before taxes
$7,200
Taxes (30%)
2,160
Net income
$5,040
600
Shares outstanding
The degree of operating leverage (DOL) is:
a. 1.58
b. 1.95
c. 3.50
d. 1.40
expand button
Transcribed Image Text:Use the data given below. Sales (30,000 units) $150,000 Variable costs 100,800 Contribution margin $49,200 Fixed manufacturing costs 24,000 Operating income $25,200 Interest 18,000 Earnings before taxes $7,200 Taxes (30%) 2,160 Net income $5,040 600 Shares outstanding The degree of operating leverage (DOL) is: a. 1.58 b. 1.95 c. 3.50 d. 1.40
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education