Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 12, 2024

A company has a 20% contribution margin ratio and degree of operating leverage of 4. Its fixed costs are $15,000. Assume that sales go up

A company has a 20% contribution margin ratio and degree of operating leverage of 4. Its fixed

costs are $15,000. Assume that sales go up by $30,000 or 30%. Then, the companys

profit will go up by:

A. 6%

B. 80%

C. 120%

D. $7,200

E. $9,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

The Major Accounting Firms Understanding The Role Of Global Auditing Giants

Authors: Seth Nashe

1st Edition

B0CGKZ5Y2Q, 979-8859081318

More Books

Students also viewed these Accounting questions

Question

★★★★★

Let x = 0.99999 .... (a) Do you think that x Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

The following information applies to Fedex Corporation reported its balance sheet at May 31, 2013. Assume the following alphabetically liste accounts were included in its trial balance immediately...

Answered: 1 week ago

Question

★★★★★

2. What type of justification has been used for the text? Was this a wise choice for this page size? Why or why not?

Answered: 1 week ago

Question

★★★★★

The separate income statements of Danner Company and its 90%-owned subsidiary, Link Company, for the year ended December 31, 2012, are as follows: The following additional facts apply: a. On January...

Answered: 1 week ago

Question

★★★★★

A company has a 20% contribution margin ratio and degree of operating leverage of 4. Its fixed costs are $15,000. Assume that sales go up by $30,000 or 30%. Then, the companys profit will go up by:...

Answered: 1 week ago

Question

★★★★★

TENALPINA TOOLS: PRODUCT LINE EXPANSION \"Now comes the real test,\" lGiulia thought to herself, \"evaluating my idea for expanding the product offerings.\" She gathered up her notes and opened a...

Answered: 1 week ago

Question

★★★★★

A friend has asked you to help him figure out a statement he received from his broker. It seems that that at the start of last year, your friend paid $900 for a bond and sold it at the end of the...

Answered: 1 week ago

Question

★★★★★

You are told that P(A) = 0.4, P(B) = 0.5 and P(A or B) = 0.68 What is the value of P(A and B)? Please provide your answer in decimal form or percentage form, correctly rounded to two decimal places.

Answered: 1 week ago

Question

★★★★★

Trish Harris has deposited $2500 today in an account paying 6 per cent interest annually. What would be the simple interest earned on this investment in five years? If the account paid compound...

Answered: 1 week ago

Question

★★★★★

Mr. Lee was intending to enroll in MaxCares Medicare Advantage plan this year. However, due to his current medical condition, his daughter Debbie has been appointed as his legal representative over...

Answered: 1 week ago

Question

★★★★★

Critically assess section 4 [Exclusions] of Ghanas Electronic Transactions Act, 2008 (Act 772) in terms of its effect on e-commerce technology innovation in Ghana in the light of the UNCITRAL Model...

Answered: 1 week ago

Question

★★★★★

3. Explain the forces that influence how people handle conflict

Answered: 1 week ago

Question

★★★★★

2. Describe ways in which group size, social relationships, and communication networks affect group communication

Answered: 1 week ago

Question

★★★★★

1. List the characteristics and types of groups and explain how groups develop

Answered: 1 week ago

Previous Question Next Question