FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

A company had predicted sales of $61,000 and EBIT of $48,000 for the year. However, actual sales were only $49,000 and EBIT was only $44,000.

A company had predicted sales of $61,000 and EBIT of $48,000 for the year. However, actual sales were only $49,000 and EBIT was only $44,000.

1 What is the degree of operating leverage?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

978-0078025914

Students also viewed these Finance questions

Question

How financially stable is the vendor and parent company?

Answered: 1 week ago

Question

★★★★★
Marty Monk Fisher owns the largest motorcycle dealership in southern Ohio. Recently, he was approached by Bob Sherman, founder of Mandrake Motorcycles, and offered the opportunity to be the sole...

Answered: 1 week ago

Question

★★★★★
You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and...

Answered: 1 week ago

Question

★★★★★
Whereas governments can be seen as extremely large, multipurpose firms, at the other extreme, sometimes behave like very small firms. counties households ()manufacturing plants conglomerates

Answered: 1 week ago

Question

★★★★★
Joann Crier has completed her 3-month probation period with Inner City Health Care. She is doing quite well and has demonstrated skill in accurate financial documentation. She has been asked to take...

Answered: 1 week ago

Question

★★★★★
Scenario 2 Jenna, a marketing specialist, has an employment contract that was renewed yearly over a five year period. Jenna's contract was renewed annually to align with the company's growth...

Answered: 1 week ago

Question

★★★★★
Dave was a bachelor who lived in Sydney. He was a loner and in ill health. He contacted his sister, Keren, in Oxford, England and asked her to move to Sydney to help look after him. He promised that...

Answered: 1 week ago

Question

★★★★★
The demand equation for pen per day is as under (6) D 160- 15 P Calculate (a) How many pens per day can the firm sell at a price of Rs. 10 per pen? (b) If firm wants to sell two pens per day what...

Answered: 1 week ago

Question

★★★★★
The balance sheet for Quinn Corporation is shown here in market value terms. There are 6,000 shares of stock outstanding. Market Value Balance Sheet Cash Fixed assets $45,500 490,000 Equity $535,500...

Answered: 1 week ago

Previous Question Next Question