Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 6 Not yet answered Points out of 1.00 Flag question (Ch6) Candel Gym has sales of $300,000 this month, contribution margin of $90,000, monthly

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 6 Not yet answered Points out of 1.00 Flag question (Ch6) Candel Gym has sales of $300,000 this month, contribution margin of $90,000, monthly fixed cost of $54,000 and profit of $36,000. What is the firm's current operating leverage number? Select one: O a. 1.00. b. 2.50. O c. 0.30. O d. 0.40. Question 7 Not yet answered Points out of 1.00 Flag question (Cho) Dos Mfg Co. sells two products. Product A sells for $10 per unit with variable costs of $6 per unit. Product B sells for $20 per unit with variable costs of $12 per unit. Product A sells 75%, while B sells 25% of the total units sold. Currently, with combined sales of 20,000 units, the company made Total Revenue of $250,000, after subtracting variable cost got Total Contribution Margin of $100,000, and after subtracting Total Fixed Cost of $50,000, earned Operating Profit of $50,000. The ratio of total contribution margin to total revenue was 40%. What would be the breakeven point in combined total sales $s? Select one: O a. $10,000 O b. $125,000. $50.00 Question 8 Not yet answered Points out of 1.00 P Flag question (Ch5&6) Marshall Company had actual sales of $600,000 when break-even sales were $420,000. What is the margin of safety ratio? Select one: a. 3513% b. 25% c. 30% d. 45% Question 9 Not yet answered Points out of 1.00 P Flag question (Ch5&6) Candel Gym has sales of $300,000 this month, contribution margin of $90,000, monthly fixed cost of $54,000 and profit of $36,000. What is the firm's current breakeven volume in dollars? Select one: a. $264,000. O b. $246,000. c. $156,000. O d. $180,000. Question 10 Not yet answered Points out of 1.00 Flag question (Ch6) The degree of operating leverage Select one: O a. affects a company's break-even point. O b. All listed choices are correct. c. can be calculated by dividing total contribution margin by operating income. d. provides a measure of the company's earnings volatility

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Principles Of Managerial Finance

Authors: Lawrence J. Gitman, Chad J. Zutter

13th Edition

9780132738729, 136119468, 132738724, 978-0136119463

Students also viewed these Accounting questions

Question

a. What is the title of the position?

Answered: 1 week ago