Compute the degree of operating leverage for each company

Assignment Help Accounting Basics
Reference no: EM133117777

Question - Information for two companies follows:

 

Skittles Company

Starburst Company

Sales

$7,825,600

$3,828,000

Contribution margin

6,375,600

1,428,000

Fixed costs

4,989,600

918,000

Required -

(1) Compute the degree of operating leverage (DOL) for each company.

(2) Which company is expected to produce a greater percent increase in income from a 10% increase in sales?

Reference no: EM133117777

Questions Cloud

How much would be meg security revenue : On September 1, 2019, Meg Security enters a six-month contract with a client worth $60,000 to be paid. How much would be Meg Security revenue
Case of the variable laminates : Design an experiment that will assist the process engineers use in determining what action to take to reduce laminate thickness variation.
Can topiary also be charged with this offence : The Office of the Public Prosecutor now wants to charge Declan with attempted murder. Can Topiary also be charged with this offence
ICTWEB519 Develop complex web page layouts : ICTWEB519 Develop complex web page layouts - design and develop websites and in recent years you have specialised in designing single page websites
Compute the degree of operating leverage for each company : Which company is expected to produce a greater percent increase in income from a 10% increase in sales? Compute degree of operating leverage for each company
How much is the dp and estimated monthly amortization : They currently have a joint savings account of Php 600,000.00. How much is the DP and estimated monthly amortization
Internal and external sources of marketing information : Identify and apply concepts and theories of marketing to sports-related enterprises to include internal and external sources of marketing information
Innovation in technology : Identify a new product that is based on an innovation in technology, and draw up a strategic technical plan for its development.
Prepare the IS, the BS and the CF statement for DE : The rest will be paid next period5.DE gets a 3-year loan for 300. The interest rate on the loan is 10%. Prepare the IS, the BS and the CF statement for DE

Reviews

Write a Review

Accounting Basics Questions & Answers

  What be recorded as the carrying value of note receivable

On January 2, 2019, Anne Inc. sold equipment, What should be recorded as the carrying value of the note receivable as of December 31, 2021 balance sheet?

  What is the current market value for machine a

What is the current market value for machine A that would make the two machines equally attractive at an interest rate of 12% per year?

  Prepare Income statement financial statements for Oberon Ltd

The following trial balance was extracted from the nominal ledger of Oberon Ltd on 31 March 2019: Prepare Income statement financial statements for Oberon Ltd

  Differential amplifier biased with a current source

AMOS differential amplifier biased with a current source I =200 μA is found to switch currents completely to one side of the pair when a difference signal vid =0.3 V is applied.

  Computing diluted EPS for the year ended December

What is the number of shares that should be used in computing diluted EPS for the year ended December 31, 20X2

  Company with mostly large institutional shareholders

Why: a company with mostly large institutional shareholders, or one with many small retail shareholders?

  Why should i buy a bond at a premium

For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2015, financial statements immediately after the bonds are issued: Assume that a retired person has written to you (an investment adviser) askin..

  How much revenue sydney ltd recognise for month of june

Credit sales of $300,000 in June 2018, only 50% to be collected in during June 2020. How much revenue would Sydney Ltd recognise for the month of June 2020?

  Prepare the company statement of cash flows

CTUK LLC is a retail company. Use the information below to prepare the company's statement of cash flows for the year ended 12/31/2016 using

  Example of a total institution

Question 1: Which of the following would be the best example of a total institution?

  How systems like erp could help improve the business process

Think about why the new technologies you have researched on could have an impact on how supply chain could be optimized.

  Prepare the appropriate entries as of december

Blue still owned the bonds and their fair value had recovered to $21,600. Prepare the appropriate entries as of December 31, 2021

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!

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