User Account

All Pages

Compute the degree of operating leverage

Assignment Help Accounting Basics
Reference no: EM132556347

Question - Assume that the operating results for last year were:

Sales $400,000

Less variable expenses 160,000

Contribution margin 240,000

Less fixed expenses 180,000

Net income $60,000

Required -

a. Compute the degree of operating leverage at the current level of sales.

b. The president expects sales to increase by 20% next year. By what percentage should net income increase?

Reference no: EM132556347

Questions Cloud

Advise whether Amari Bhd has control over Neona Bhd : On 1 July 2018, Amari Bhd acquired 70% ordinary share capital of Neona Bhd and 65%, Advise whether Amari Bhd has control over Neona Bhd
Professional presentation : Prepare a professional PowerPoint presentation summarizing your findings for CLA2.
Describe in details the industry : Describe in details the industry this company belongs to, and who represents their customer base. and how do you serve your customers' needs as Intern/Employee?
How much interest would be recorded for the year : Assuming 12% approximates the market rate of return, how much interest would be recorded for the year ending December 31
Compute the degree of operating leverage : Compute degree of operating leverage at current level of sales. The president expects sales to increase by 20% next year. By what percentage income increase
Server virtualization : Describe the organization's environment, and evaluate its preparedness for virtualization. Explain Microsoft licensing for virtualized environments
What would recorded as a gain on the transfer of receivables : Marigold Corp. also pays a finance fee of 1% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables
Describe how the thread can be mitigated : Describe how the trend is a threat to personal and/or corporate security. Describe how the thread can be mitigated.
Describe the organization environment : Describe the organization's environment, and evaluate its preparedness for virtualization.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much do you have to put in yearly to have that same

How much do you have to put in yearly to have that same amount at the same interest rate

  Determine the companys cost percentage

National Distributing Company uses a periodic inventory system to track its merchandise inventory and the gross profit method to estimate ending inventory

  Wires inc sells telephone poles to utility and telephone

wires inc. sells telephone poles to utility and telephone companies across the united states. there are four regions

  Review the case of bad debts account of g gardham

On 1st January, 1962 the Provision for Bad Debts Account in the books of G. Gardham showed a credit balance of £230. During the following twelve months.

  Determine the depreciation expense for each year

Determine the Depreciation Expense for each year of the life of the machine using declining balance depreciation

  What happens to the break-even level of units per month

If variable costs decrease by 10%, what happens to the break-even level of units per month for Keene

  Instructionsa journalize the closing entries at april 30b

instructionsa journalize the closing entries at april 30.b post the closing entries to income summary and retained

  Calculate the required rate of return on equity

1. Calculate the required rate of return on equity for General Mills as of the beginning of Year +1. 2. Calculate the sum of the present value of total dividends for Years +1 through +5.

  What were the total cost and book value of property

Using the notes to find financial statements, what method or methods of depreciation are used by Apple for financial reporting purposes

  Prepare an income statement through gross profit

At the end of Duckworth Department Store's fiscal year on November 30, 2010, these accounts appeared in its adjusted trial balance.

  Cash at beginning of periodcash at end of periodcash flows

norman companys income statement for the year ended december 31 2012 contained the following condensed information.

  Tyler kirsch has recently been hired as the manager of

tyler kirsch has recently been hired as the manager of darkcanyon coffee. dark canyon coffee is a national chain

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd