User Account

All Pages

Compute the operating leverage for varner inc

Assignment Help Accounting Basics
Reference no: EM131785406

Question - Varner Inc. and King Inc. have the following operating data:

Varner King

Sales $300,000 $600,000

Variable costs 120,000 360,000

Contribution margin 180,000 240,000

Fixed costs 120,000 80,000

Income from operations 60,000 160,000

a. Compute the operating leverage for Varner Inc. and King Inc. If required, round to one decimal place.

b. How much would income from operations increase for each company if the sales of each increased by 20%? If required, round answers to nearest whole number.

Reference no: EM131785406

Questions Cloud

Compute the the corporation taxable income : A corporation's taxable income before the divdends received deduction (DRD) is $40,000. The corporation's taxable income (loss)after the DRD is
Analyze my capitated managed care agreement : Analyze my capitated managed care agreement with the city. Using differential cost analysis for 2010 data
How much would the car have cost : A collector made a $10,000 down payment for a classic car and agreed to make 18 quarterly payments of $1500 at the end of each quarter.
Computer licensing rights were purchased this year : Computer licensing rights were purchased this year on January 1 for $66,000. The rights are expected to have a six-year useful life to the company
Compute the operating leverage for varner inc : Compute the operating leverage for Varner Inc. and King Inc. If required, round to one decimal place
What size payments will enable to reach the goal : A couple would like to have $50,000 at the end of 4½ years. They can invest $10,000 now and make additional contributions at the end of each quarter.
Find the torque-frequency curve for the system : A torsional system with a torsional damper is shown in Figure. Determine the torque-frequency curve for the system.
What is the contribution margin ratio for bert company : Bert Company budgets sales of $1,250,000, fixed costs of $450,000, and variable costs of $200,000. What is the contribution margin ratio for Bert Company
Discuss cost-flow assumption on the income of the company : the various cost-flow assumptions used to determine the cost of goods sold? What is the impact of each cost-flow assumption on the income of the company

Reviews

Write a Review

Accounting Basics Questions & Answers

  Develop an entire facility for additional training scenario

Angel is looking to expand her current business, Sports Nation. She currently has been providing training at her basketball court, but wants to seize a rare opportunity to purchase adjacent land so that she can develop an entire facility for a..

  Define internal control. who is responsible for establishing

Define internal control. Who is responsible for establishing an effective system of internal control

  What is the purpose of a classified statement

What is the purpose of a classified statement of net position?

  What are cisco net income

Cisco system has total assets of $35.594 billion, total debt of $9.678 billion, and net sales of $22.045 billion, and net sales of $22.045 billion. Their net profit margin for the year is 20 percent, while the operating profit margin was 30 percen..

  Describe the differences between b2c and b2b

Describe the differences between B2C and B2B.

  Analyze the account balances for accounts receivable

ACCT 451- Analyze the account balances for accounts receivable, inventory, and short/current long-term debt. Describe any observations about those accounts and discuss additional information you want to consider during the current year audit.

  Estimate the cost value of the inventory

Using the gross profit method, estimate the cost value of the inventory at the end of October

  What was its capacity utilization rate last month

1. A manufacturing shop is designed to operate most efficiently at an output of 550 units perday. In the past month the plant produced 490 units. What was its capacity utilization ratelast month?

  A manufacturing company applies factory overhead based on

a manufacturing company applies factory overhead based on direct labor hours. at the beginning of the year it estimated

  Construct the direct labor budget

With the number of workers currently employed, that means that the company is committed tp paying its direct labor work force at lease 5600 hours in total each month even if there is not enought work to keep them busy. Construct the direct labor b..

  Create worksheet to consolidate separate financial statement

The individual financial statements for Gibson Company. Prepare a worksheet to consolidate the separate 2015 financial statements for Gibson and Keller.

  What should richman company report as a gain on the bonds

Assuming Richman Company has a portfolio of available-for-sale debt investments, what should Richman Company report as a gain (or loss) on the bonds

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