Given the following information, calculate the margin of safety if the sales double. Sales . $100,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Given the following information, calculate the margin of safety if the sales double. Sales . $100,000 Less: variable expenses.. 20,000 Contribution margin . $ 80,000 Less: fixed expenses.. 80,000 Operating income. $0 S7-14 Compute and use operating leverage factor (Learning Objective 5) Refer to the original data from S7-13, where 1,000 units were sold at the price of $100. If the company sells 1,200 units, what is the operating leverage factor? If the sales volume increases by 10%, by what percentage will the operating income change? Given the following information, calculate the margin of safety if the sales double. Sales . $100,000 Less: variable expenses.. 20,000 Contribution margin . $ 80,000 Less: fixed expenses.. 80,000 Operating income. $0 S7-14 Compute and use operating leverage factor (Learning Objective 5) Refer to the original data from S7-13, where 1,000 units were sold at the price of $100. If the company sells 1,200 units, what is the operating leverage factor? If the sales volume increases by 10%, by what percentage will the operating income change?
Expert Answer:
Answer rating: 100% (QA)
Operating leverage factor Contribution MarginOperating income Sales 1200100 120000 Less Variable e... View the full answer
Related Book For
Project Management A Managerial Approach
ISBN: 978-0470533024
8th edition
Authors: Jack R. Meredith, Samuel J. Mantel Jr.
Posted Date:
Students also viewed these economics questions
-
Refer to the original data given in Exercise III5 for Fiber Technology, Inc. Required: Prepare a graphical analysis of the economic order quantity decision for XL-20.
-
Refer to the original data in Problem 19-25. Fred Morton has just purchased a life insurance policy from Porter with premiums equal to $1,500 per year. Required: 1. Assume Fred holds the policy for...
-
Compute the Z score for Win-Mart, given the following information for year-end 2012: What proportion (measured as a percentage) of the Z score is composed of 0.60(X4)? What proportion (measured as a...
-
You have been given the following algorithm. What does it return? Input: Array A [ 1 . . . [ 1 . . . n ] ] Output: ? ? ? ? out 1 1 for i 2 2 to n do if A [ [ i ] < ] < A [ [ out ] ] then out i return...
-
Match the following terms and definitions. a. dynamic password b. token device (TD) c. single sign-on (SSO) d. Intrusion Prevention System (IPS) e. input controls f. output controls g....
-
What factors should you consider when estimating your retirement living expenses?
-
Why is the sales forecast the starting point for budgeting?
-
Start from the posted T-accounts and the adjusted trial balance that Davis Consulting prepared for the company at December 31. At December 31, the business gathers the following information for the...
-
It takes 20 hours and $400 to interview a candidate, and it takes 120 hours and $3600 to train an employee. A company has less than $95000 to interview and train employees, and it wants to spend at...
-
Prepare a corpo The first step was for the two owners to form an LLC. The new company initially authorized 500,000 shares at a $1.00 par value per share. 1) In recognition of their development of the...
-
(a) Your answer is correct. On January 1, 2025, Ayayai Inc. sold computer equipment to Kingbird Co. The sales price of the equipment was $510,000 and its carrying amount is $390,000. Record any...
-
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Sales Average operating assets Division Queensland $ 1,984,000 $ 620,000 New South Wales $ 2,907,000...
-
2) Consider the function f(x) = x + cos(x) on the interval [0,3] a) Approximate a root off using the method of false position by giving a table of p for n 0,1,.,7. b) Approximate a root of f usig...
-
1 . Compare and contrast the following proposed approaches for dealing with international differences in accounting, disclosure, and auditing standards: ( 1 ) reciprocity, ( 2 ) reconciliation, and (...
-
As part of her year-end responsibilities, Helen prepared the company's variable costing income statement as follows. Sales Variable expenses: $447,200 COGS $172,000 Operating expenses 17,200 189,200...
-
Gary King owns a garage and is contemplating purchasing a tire retreading machine for $25,820. After estimating costs and revenues, Gary projects a net cash inflow from the retreading machine of...
-
Asset Furniture (7-year) Date Acquired 5/12/17 Way Corporation disposed of the following tangible personal property assets in the current year. Original Basis Date Sold Convention 7/15/21 HY $ 97,500...
-
Pearl Medavoy will invest $10,240 a year for 20 years in a fund that will earn 10% annual interest. . If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If...
-
Given the following information, calculate the critical ratios and indicate which activities are on target and which need to be investigated. Comment on the situation for each of theactivities....
-
Does 72 different risk factors seem like a lot to plan for? How important was CSPs contingency planning for this project?
-
Describe the learning curve phenomenon.
-
In the standard cost system, what is the appropriate treatment of a change in wage rates (per new labor union contract) that dominate the cost of labor?
-
Explain the difference between how the actual costs and the standard cost of actual inputs are computed in variable overhead analysis.
-
Explain the difference between the revenue variance and the sales price variance.
Study smarter with the SolutionInn App