Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer the 1st one asap please. (c1) Calculate the degree of operating leverage at sales of $79,000,000 if (1) Waterway Beauty uses sales agents, and

answer the 1st one asap please.
image text in transcribed
image text in transcribed
image text in transcribed
(c1) Calculate the degree of operating leverage at sales of $79,000,000 if (1) Waterway Beauty uses sales agents, and (2) Waterway Beauty employs its own sales staff. (Round answers to 2 decimal places, eg. 1.25.) Degree of operating leverage (1) Waterway Beauty uses sales agents 12) Waterway Beauty employs its own sales staff e Textbook and Media Attempts: 0 of 15 used Submit Answer Save for Late Questio Waterway Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paida commission of 2156 of sales. The income statement for the year ending December 31, 2020, is as follows $79,000,000 Sales Cost of goods sold $32.390,000 Variable 8.750.000 41.140.000 Fixed 537.860,000 Grossmann Selling and marketing expenses Commission 516,590,000 10.607 200 27.197.200 Fored costs $10662.000 Operating income The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $9.480.000

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

College Accounting Chapters 1-30

Authors: David Haddock, John Price, Michael Farina

16th Edition

1260247902, 978-1260247909

More Books

Students also viewed these Accounting questions