Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

Consider the following summary modified income statement for Tech Inc.: Sales $552,000 Variable Operating Costs 233,000 Contribution Margin $319,000 Fixed Operating costs 130,000 Operating Income

Consider the following summary modified income statement for Tech Inc.: Sales $552,000 Variable Operating Costs 233,000 Contribution Margin $319,000 Fixed Operating costs 130,000 Operating Income $189,000 Interest Expense 21,000 Net Income $168,000 Calculate Tech's degree of operating leverage. 2 Degree of Operating Leverage = 10

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

Students also viewed these Accounting questions

Question

When women from some ethnic groups become feminist activists, the men in their community often tell them that this activism is a threat to ethnic unity. True or False

Answered: 1 week ago

Question

★★★★★

Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of eachemployee. Amount to Be Withheld Martal No. of...

Answered: 1 week ago

Question

★★★★★

I am a Web Programming class. The text is Web Programming with HTML5,CSS, ans Javascript by John Dean.. I was to create a webpage identical to the one in the text. Here is my when I run it: The font...

Answered: 1 week ago

Question

★★★★★

Assume that the North Store's floor space can't be subleased. However, let's introduce three more assumptions. First, assume that if the North Store were closed, one-fourth of its sales would...

Answered: 1 week ago

Question

★★★★★

Captain Jack Sparrow has been marooned on an island in the Atlantic by his crew, and decides to build a raft to escape. The wind seems quite steady, and first blows him due east for 18 km, and then...

Answered: 1 week ago

Question

★★★★★

Compute the Gross Profit Given; Show your answer as a number only, no Dollar signs, decimals, or commas. Sales Revenues = $180,000 Office Expense = $33,000 Rent Expenses $10,000 Cost of Good...

Answered: 1 week ago

Question

★★★★★

angley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct . Multiple Choice Higher financial leverage involves lower...

Answered: 1 week ago

Question

★★★★★

A potential buyer signs a contract with a seller but then decides not to buy. The seller may sue the potential buyer for specific performance or damages unless the contract was A. a bilateral...

Answered: 1 week ago

Question

★★★★★

Kristin us a distributor of brass picture frames. For 2020, the company plans to purchase for P30 each and sell them for P45 each. The company's fixed costs are expected to be P240,000. Its only...

Answered: 1 week ago

Previous Question Next Question