Head-First Company plans to sell 5,000 bicycle helmets at $70 each in the coming year. Unit variable
Question:
Head-First Company plans to sell 5,000 bicycle helmets at $70 each in the coming year. Unit variable cost is $49 (includes direct materials, direct labor, variable overhead, and variable selling expense). Total fixed cost equals $29,400 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,600.
Required:
Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 44% (9 reviews)
Degree of operating leverage ...View the full answer
Answered By
HILLARY KIYAYI
I am a multi-skilled, reliable & talented Market analysis & Research Writer with a proven ability to produce Scholarly Papers, Reports, Research and Article Writing and much more. My ultimate quality is my English writing/verbal skill. That skill has proven to be the most valuable asset for project writing, Academic & Research writing, Proofreading, HR Management Writing, business, sales, and a variety of other opportunities.
4.80+
24+ Reviews
60+ Question Solved
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
Question Posted:
Students also viewed these Managerial Accounting questions
-
The Oil City Company plans to sell an additional 1 million shares of common stock through a rights offering. The company currently has 12 million shares outstanding. Each shareholder will receive one...
-
Head -First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Variable cost is 60% of the sale price; the contribution margin is 40% of the sale price. Total fixed cost...
-
Where appropriate, round your answer to the nearest tenth of percent. Determine the answer to the question. What is 15% of $45.00?
-
Linking every transport stakeholder together and ensuring seamless travel across Europe is a dream. With this objective, Amadeus, a leading global travel technology player, initiated a novel idea of...
-
Given the following information, complete the balance sheet shown next. Collection period ........................... 71 days Days' sales in cash .......................... 34 days Current ratio...
-
For a three-phase fault at the spark location shown in the figure below with all equipment three-phase and generator of finite size, determine the symmetrical rms fault current. Ignore the series...
-
How have historical trends in society influenced a development in management and organization theory? Provide an example. LO.1
-
Van makes an investment in a partnership in 2014. Vans capital contributions to the partnership consisted of $30,000 cash and a building with an adjusted basis of $70,000, subject to a nonrecourse...
-
If your bank pays you 1.7% annual interest rate and you deposit $600 today, what will be your balance in five years? The bank balance will be?
-
The velocity of a slider is defined by the relation v = v sin (nt + ). Denoting the velocity and the position of the slider at t = 0 by v0 and x0, respectively, and knowing that the maximum...
-
Head-First Company plans to sell 5,000 bicycle helmets at $70 each in the coming year. Unit variable cost is $49 (includes direct materials, direct labor, variable overhead, and variable selling...
-
Head-First Company had planned to sell 5,000 bicycle helmets at $70 each in the coming year. Unit variable cost is $49 (includes direct materials, direct labor, variable overhead, and variable...
-
In Problem valuate the expression without using a calculator. ln e -1
-
Consider a two-period model in which an individual needs to decide how much to consume in the present, c, and how much to consume in the future, c. The individual receives income, y, in the present,...
-
Koopman Company began operations on January 1, 2015, and uses the FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2017,...
-
Assume you have been given $400,000 CAD with access to all listed stocks, bonds, futures, and options worldwide. You can trade in options and futures, in combination with the underlying asset....
-
1.Basis of Islamic Accounting Theory The history of the birth of Islamic accounting is inseparable from the development of Islam, the obligation to record non-cash transactions (see QS. Al-Baqarah:...
-
What kind of information can you provide from the label on the door frame of a car? A scene of a car from drivers side a. factory recommended mileage a year b. factory recommended tire pressure c....
-
Analysis of Stockholders Equity The stockholders equity section of Kay Corporation at the end of the current year showed: 1. What is the dollar amount to be reported for preferred stock? 2. What is...
-
How do the principles of (a) Physical controls and (b) Documentation controls apply to cash disbursements?
-
Consider the following series of monthly stock prices for two hypothetical companies: On a relative basis, how has Susan, Inc., done compared to Carolyn Co.? Month 1 STAW N 2 3 6 Susan, Inc. $25 24...
-
Presented below are the four assumptions and four principles used in measuring and reporting accounting information. Assumptions Principles Economic entity ........... Historical cost Continuity...
-
The following economic events that were related to K&B Grocery Store occurred during 2009. a. On February 15, K&B placed an order for a new cash register with NCR, for which $700 would be paid after...
-
The following events occurred for Parker Company. a. Paid $5,000 cash for land b. Performed consulting services for a client in exchange for $1,200 cash c. Performed consulting services for a client...
-
X Your answer is incorrect. Flounder Consulting Corp. company records revealed the following for the current year: What was the net cash flow from operating activities for the year? $ 0 $ 9 8 0 0...
-
Assume that interest rate parity holds. The U.S. fiveyear interest rate is 0.08 annualized, and the Mexican fiveyear interest rate is 0.05 annualized. Todays spot rate of the Mexican peso is $0.21....
-
find the NSP of a whole life insurance.6 with $100,000 Death benefits, for a female aged 105 years, if i=10%? (use Australian life Tables 2005-07) find the NSP of a whole life insurance.6 with...
Study smarter with the SolutionInn App