User Account

All Pages

What the computed amount of leverage means

Assignment Help Managerial Accounting
Reference no: EM132542094

Victoria Company sells a single product. The company's sales and expenses for a recent month follow:

                                                Total Per                  Unit

Sales                                P600,000                P40

Less: variable expenses          420,000                 28

Contribution margin                P180,000               P12

Fixed expense                           150,000

Net operating income                 P 30,000

Question 1: Compute the degree of operating leverage (DOL). Explain what the computed amount of leverage means in terms of the effect of changes in sales to profit.

Reference no: EM132542094

Questions Cloud

Did the departmental rates do better than the plantwide rate : Comment on the ability of departmental rates to improve the accuracy of product costing. Did the departmental rates do better than the plantwide rate?
Project about iot in counting people : Project about IOT in counting people - You need to have at least five literature review for each objective.
Find and calculate the manufacturing cost per unit : During 2020, Rafael Corp. produced 27,120 units and sold 27,120 for $14 per unit. Find and Calculate the manufacturing cost per unit.
Explain how environmental management accounting used : Explain how environmental management accounting can be used to overcome the shortcomings of traditional management accounting in dealing.
What the computed amount of leverage means : Compute the degree of operating leverage (DOL). Explain what the computed amount of leverage means in terms of the effect of changes in sales to profit.
What is the maximum external price that sunland : Find the company would prefer to buy the CDs, what is the maximum external price that Sunland would be willing to accept to acquire the 59700 units externally?
How does a budget benefit management in control function : Identify at least three benefits of budgeting in helping managers plan and control a business. How does a budget benefit management in its control function?
Find and calculate the material price and quantity variance : Find and Calculate the Material Price and Quantity Variance. materials standards have been established for a particular raw material used
When should also consider in setting product prices : Management as a general guidance, when are some examples of other factors that managers should also consider in setting product prices?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Calculate the monthly cash receipts for january and february

Calculate the monthly cash receipts for January, February, and March of 2014. When Phildor Inc analyzed its payments from customers

  Traditional format, with costs organized by function

Prepare an income statement for Marwick’s Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number

  List several inherent risk factors effecting hih

List several inherent risk factors effecting HIH at the financial report leveland whether they would have contributed to anincrease or decreasein theinherent risk assessment.

  Prepare a scatter graph of loan processing cost

Estimate total profit in a month when 275 loans are processed. (Round to the nearest dollar.)

  What is the budgeted cost of goods manufactured for year

January 1, $186,800; and work in progress inventory on December 31, $194,300. What is the budgeted cost of goods manufactured for the year?

  Which costs would not be included in finished cost inventory

Under variable costing, which of the following costs would not be included in finished goods inventory? steel costs for a machine tool manufacturer

  What the term relevant range in accounting means

In an income statement prepared as an internal report using the direct costing method, fixed selling and administrative expenses would

  Hi test company uses the weighted average method

Hi Test Company uses the weighted average method of process costing to assign production costs to its products.

  Jay rexford president of photo artistry company was just

jay rexford president of photo artistry company was just concluding a budget meeting with his senior staff.nbsp it was

  More limited produces four types of electric motors type x

more limited produces four types of electric motors. type x and y are sold by the business to external customers. the

  Prepare an income statement for the month of march

Prepare an income statement for the month of March.

  How to describe operating profit margin and asset turnover

How to Describe operating profit margin and asset turnover, and explain how each of these ratios can be used to help division managers improve ROI.

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