Question
Mr. Zaki anticipates that he can provide the oil change service with a filter at $40.00 each and sells 5000 oil change. Required: 1.
Mr. Zaki anticipates that he can provide the oil change service with a filter at $40.00 each and sells 5000 oil change. Required: 1. Using the high-low method, determine variable costs per unit and total fixed costs. 2. Determine the break-even point in number of oil changes and sales dollars. 3. Determine the oil changes required to earn net income of $20,000. 4. Margin of safety in Dollar & Ratio (assuming the company's actual sales are 5000 oil change) 5. What is the degree of operating leverage, if sales change by 10% what is the expected change on operating income. (CLO: 3) Paragraph 4 BI
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