Find what is the degree of financial leverage

Assignment Help Managerial Accounting
Reference no: EM132811437

Problem 1: With the following data pertaining to cost-volume-profit relationship: Breakeven point in units 1,000 Variable costs per unit P600.00 Total Fixed Cost P150,000.00 How much will be contributed to profit before income taxes by the 1001st unit sold?.

Problem 2: B Company's contribution margin is P45,000 at sales of P150,000. If the degree of operating leverage is 6, what is the degree of financial leverage if the interest expense is P2,000 and preference dividends declared is P1,500. Tax rate is 30%

Problem 3: Company is planning to produce two products, AA and ZZ. Company is planning to sell 120,000 units of AA at P4 a unit and 200,000 units of ZZ at P3 a unit. Variable costs are 70% of sales for AA and 80% of sales for ZZ. In order to realize a profit of P160,000, total fixed cost would be.

Reference no: EM132811437

Questions Cloud

Evaluate the optimal strategy : Suppose you wanted to start a company where you live. Which of the PEST factors would be the strongest? How would you evaluate the optimal strategy?
Calculate the basic earnings per share : Hayward Corporation had net income of $50,000 for the year ended December 31, 2020, Calculate the basic earnings per share
Investigate regulatory issues relating to legaliza­tion : Investigate the regulatory issues relating to the legaliza­tion and the use of medical and recreational marijuana within the State of Colorado.
Critique on how you arrive at mitigation strategy : Analysis and critique on how you arrive at your mitigation strategy. Demonstrate knowledgeof governmentpolicies and regulatory guidance
Find what is the degree of financial leverage : B Company's contribution margin is P45,000 at sales of P150,000. If the degree of operating leverage is 6, what is the degree of financial leverage?
Managing capacity : Capacity management in businesses is a function of their operations and environment. How do capacity decisions affect productivity?
How do you think boredom afffects decision making : 1.) How do you think boredom afffects your decision making, beyond promoting unethical decisions? Explain.
Record the conversion of the preferred stock : The common stock is trading at $25 per share at the time of conversion. Record the conversion of the preferred stock
Impact of operations on local communities : You are a member of senior management of a large local company operating in the mining sector named DigPaMore Company.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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