FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Question
Chapter 21, Problem 22QS
1.
To determine
Concept Introduction:
Income: Income refers to the earnings that are earned by the company after selling its products in the market. It can be determined by deducting the fixed cost from the contribution margin.
Degree of Operating leverage: Degree of operating leverage measures the effects that arise due to the changes in the level of sales with respect to income.
Income of Company S.
2.
To determine
Concept Introduction:
Degree of Operating leverage: Degree of operating leverage measures the effects that arise due to the changes in the level of sales with respect to income.
Degree of Operating leverage.
3.
To determine
Concept Introduction:
Income: Income refers to the earnings that are earned by the company after selling its products in the market. It can be determined by deducting the fixed cost from the contribution margin.
Degree of Operating leverage: Degree of Operating leverage measures the effects that arise due to the changes in the level of sales with respect to income.
The expected income if sales are increased by 15%.
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Students have asked these similar questions
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating
data:
Sales
Variable costs
Contribution margin
Fixed costs
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a. Compute the operating leverage for Beck Inc. and
Bryant Inc. If required, round to one decimal place.
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Bryant Inc.
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$216,400 $576,000
(86,800) (345,600)
$129,600
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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.
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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 contribution
Operating leverage
Asha Inc. and Samir Inc. have the following operating data:
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$159,000
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Asha Inc.
Samir Inc.
Samir Inc.
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Dollars
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$781,000
(468,600)
$312,400
(170,400)
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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
Operating Leverage
Beck Inc. and Bryant Inc. have the following operating data:
Beck Inc.
Bryant Inc.
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$238,500
$728,000
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95,700
436,800
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$142,800
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Fixed costs
100,800
179,200
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a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place.
Beck Inc.
______________
Bryant Inc.
______________
b. How much would income from operations increase for each company if the sales of each increased by 15%? If required, round answers to nearest whole number.
Dollars
Percentage
Beck Inc.
$____________
______________
%
Bryant Inc.
$___________
______________
%
Chapter 21 Solutions
FUND.ACCT.PRIN.
Ch. 21 - Cost behavior identification C1 Listed here are...Ch. 21 - QS 21-2
Cost behavior identification
c1 ...Ch. 21 - QS 21-3 Cost behavior estimation—high-low method...Ch. 21 - Prob. 4QSCh. 21 - Prob. 5QSCh. 21 - Prob. 6QSCh. 21 - Prob. 7QSCh. 21 - Prob. 8QSCh. 21 - Prob. 9QSCh. 21 - Prob. 10QS
Ch. 21 - Prob. 11QSCh. 21 - Prob. 12QSCh. 21 - Prob. 13QSCh. 21 - Prob. 14QSCh. 21 - Prob. 15QSCh. 21 - Prob. 16QSCh. 21 - Prob. 17QSCh. 21 - Prob. 18QSCh. 21 - Prob. 19QSCh. 21 - Prob. 20QSCh. 21 - Prob. 21QSCh. 21 - Prob. 22QSCh. 21 - Prob. 23QSCh. 21 - Prob. 24QSCh. 21 - Prob. 25QSCh. 21 - Prob. 26QSCh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Prob. 3ECh. 21 - Prob. 4ECh. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Prob. 9ECh. 21 - Prob. 10ECh. 21 - Prob. 11ECh. 21 - Prob. 12ECh. 21 - Prob. 13ECh. 21 - Prob. 14ECh. 21 - Prob. 15ECh. 21 - Prob. 16ECh. 21 - Prob. 17ECh. 21 - Prob. 18ECh. 21 - Prob. 19ECh. 21 - Prob. 20ECh. 21 - Prob. 21ECh. 21 - Prob. 22ECh. 21 - Prob. 23ECh. 21 - Prob. 24ECh. 21 - Prob. 25ECh. 21 - Prob. 26ECh. 21 - Prob. 1PSACh. 21 - Prob. 2PSACh. 21 - Prob. 3PSACh. 21 - Prob. 4PSACh. 21 - Prob. 5PSACh. 21 - Prob. 6PSACh. 21 - Prob. 7PSACh. 21 - Prob. 1PSBCh. 21 - Prob. 2PSBCh. 21 - Prob. 3PSBCh. 21 - Prob. 4PSBCh. 21 - Prob. 5PSBCh. 21 - Prob. 6PSBCh. 21 - Prob. 7PSBCh. 21 - Prob. 21SPCh. 21 - Prob. 1AACh. 21 - Prob. 2AACh. 21 - Prob. 3AACh. 21 - Prob. 1DQCh. 21 - Prob. 2DQCh. 21 - Prob. 3DQCh. 21 - Prob. 4DQCh. 21 - Prob. 5DQCh. 21 - Prob. 6DQCh. 21 - Prob. 7DQCh. 21 - Prob. 8DQCh. 21 - Prob. 9DQCh. 21 - Prob. 10DQCh. 21 - Prob. 11DQCh. 21 - List three methods to measure cost behavior.Ch. 21 - Prob. 13DQCh. 21 - Prob. 14DQCh. 21 - Prob. 15DQCh. 21 - Prob. 16DQCh. 21 - Prob. 17DQCh. 21 - Prob. 18DQCh. 21 - Prob. 19DQCh. 21 - Prob. 20DQCh. 21 - Prob. 21DQCh. 21 - Prob. 22DQCh. 21 - Labor costs of an auto repair mechanic are seldom...Ch. 21 - Prob. 2BTNCh. 21 - Prob. 4BTN
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