Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An organization's annual sales are 750,000 (10,000 75x units), annual fixed costs 150,000 and the variable cost per unit 45, and the organization's management expects

image text in transcribed
image text in transcribed
An organization's annual sales are 750,000 (10,000 75x units), annual fixed costs 150,000 and the variable cost per unit 45, and the organization's management expects that the amount of sales will decrease by 10% next year, annual benefits 50,000, and the number of ordinary shares 50,000. Required 1. Calculate the percentage change in the operating profit and the change in the stock sale? And comment on them? 2. Calculate and comment on the degree of operational lift and water lift? 3. Calculate the total elevation score for a 10,000 unit sales level? An organization's annual sales are 750,000 (10,000 75x units), annual fixed costs 150,000 and the variable cost per unit 45, and the organization's management expects that the amount of sales will decrease by 10% next year, annual benefits 50,000, and the number of ordinary shares 50,000. Required 1. Calculate the percentage change in the operating profit and the change in the stock sale? And comment on them? 2. Calculate and comment on the degree of operational leverage and financial leverage? 3. Calculate the total elevation score for a 10,000 unit sales level? An organization's annual sales are 750,000 (10,000 75x units), annual fixed costs 150,000 and the variable cost per unit 45, and the organization's management expects that the amount of sales will decrease by 10% next year, annual benefits 50,000, and the number of ordinary shares 50,000. Required 1. Calculate the percentage change in the operating profit and the change in the stock sale? And comment on them? 2. Calculate and comment on the degree of operational lift and water lift? 3. Calculate the total elevation score for a 10,000 unit sales level? An organization's annual sales are 750,000 (10,000 75x units), annual fixed costs 150,000 and the variable cost per unit 45, and the organization's management expects that the amount of sales will decrease by 10% next year, annual benefits 50,000, and the number of ordinary shares 50,000. Required 1. Calculate the percentage change in the operating profit and the change in the stock sale? And comment on them? 2. Calculate and comment on the degree of operational leverage and financial leverage? 3. Calculate the total elevation score for a 10,000 unit sales level

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

The Craft Of Auditing For Accounting Undergraduates

Authors: Eldar Maksymov

1st Edition

1516589890, 9781516589890

More Books

Students also viewed these Accounting questions