What is JJ degree of operating leverage

Assignment Help Accounting Basics
Reference no: EM132698726

Problem - The CFO of Jupiter Jibs (JJ) expects this year's sales to be $2.5 million. EBIT is expected to be $1 million. The CFO knows that if sales actually turn out to be $2.3 million, JJ's EBIT will be $880,000. What is JJ's degree of operating leverage (DOL)?

Reference no: EM132698726

Questions Cloud

What is Luxury degree of financial leverage : Luxury will pay $250,000 interest on its debt and $320,000 dividends to its common stockholders. If its marginal tax rate is 40 percent, what is Luxury's degree
Calculate cost of goods available for sale for coronado co : Calculate cost of goods available for sale. Assume a sale of 500 units occurred on June 15 for a selling price of $8 and a sale of 420 units on June 27 for $9.
What is Muddy degree of operating leverage : The company knows that if sales are 6 percent higher than forecasted, its EPS will increase by 36 percent. What is Muddy's degree of operating leverage (DOL)
How is the management representation letter dated : How is the management representation letter dated? What are the audit implications if management refuses to give a representation letter?
What is JJ degree of operating leverage : The CFO knows that if sales actually turn out to be $2.3 million, JJ's EBIT will be $880,000. What is JJ's degree of operating leverage (DOL)
What is a management representation letter : Give examples of transactions which may alert the auditor regarding possible previously unidentified related party transactions.
Analyze how the different types of facilities work together : Analyze the purpose and goals of each of the different types of health care facilities in the United States. Analyze how the different types of facilities work.
What are related party transactions : Give at least three examples of conditions and events which may cause the auditor to have doubt about the entity's ability to continue as a going concern.
What will DRS EBIT be : DRS forecasts that this year's sales will be $300,000 and that EBIT will be $180,000. If sales actually turn out to be $313,500, what will DRS's EBIT be

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the convertible bonds are treated solely as debt

Prepare The convertible bonds are treated as partly debt and partly capital.and also prepare The convertible bonds are treated solely as debt.

  Identify how the audit plan will be affected by the risks

Identify how the audit plan will be affected by the risks and recommend specific audit procedures to address these risks

  How much did total equipment increase or decrease by the end

How much did total equipment increase or decrease by the end of May? Use a positive number to indicate an increase or a negative number to indicate a decrease.

  Adjusting entries when the accounts of constantine inc are

adjusting entries when the accounts of constantine inc. are examined the adjusting data listed below are uncovered on

  Discuss the role of management to detect fraud

Discuss the role and responsibility of management to detect and prevent fraud in an organization. Analyze the key factors that allowed the embezzlement event

  Calculate net contribution

Venus requires a modification of the design that will allow a $2.10 reduction in direct-material cost. Calculate net contribution

  How much overhead was assigned to each of given three jobs

The first three jobs that southern Rim worked on had actual direct labor cost. How much overhead was assigned to each of the three jobs, 301, 302, and 30?

  The articles of partnership provide for salary allowances

sharp and townson had capital balances of 60000 and 90000 respectively at the beginning of the current fiscal year. the

  Calculate degree of operation leverage and interpret results

Calculate degree of operational leverage and interpret result. ABC company has a total operating fixed cost of $6000. If goods and services are produced

  What is the amount of Yap Cos owner equity

The total assets of Yap Co. are P600,000 and it's liabilities are equal to two-thirds of it's total assets. What is the amount of Yap Co.'s owner equity

  What was maverick predetermined overhead rate

Raw materials purchases for the year amounted to $1,949,000. All purchases were on account. What was Maverick's predetermined overhead rate in 2014

  Calculate equivalent units with respect to conversion costs

Calculate the equivalent units with respect to conversion costs using the weighted average process costing method.

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