Why is there a difference in the increase in incomefrom

Assignment Help Accounting Basics
Reference no: EM13614918

Juras Inc. and Hinson Inc. have the following operatingdata:

Sales                                             160,000                      215,000

Variablecosts                                  130,000                      115,000

Contributionmargin                           30,000                        100,000

Fixedcosts                                     20,000                        75,000

Income fromoperations                     10,000                        25,000

  1. Compute the operating leverage for Juras Inc. andHinson Inc.
  2. How much would income from operations increase for eachcompany if the sales of each increased by 10%?
  3. Why is there a difference in the increase in incomefrom operations for the two companies? Explain.

Reference no: EM13614918

Questions Cloud

Acalculate the electric field at the position of the 200 : three charged particles 7.00 microc -4.00 microc and q 2.00 microc are at the corner of an equilateral triangle of l
Use a standard deviation 30 mgdl and find a 99 confidence : suppose the average cholesterol level of children ages 2-14 is 175 mgdl with a standard deviation 30 mgdl. recently
A very long solid cylinder of radius r 4 cm has a uniform : a very long solid cylinder of radius r 4 cm has a uniform volume charge density ?a. how much total charge is contained
The amount of time it takes adults to fall asleep at night : the amount of time it takes adults to fall asleep at night is approximately normally distributed with a mean of 23.45
Why is there a difference in the increase in incomefrom : juras inc. and hinson inc. have the following
A politician claims that she will receive 63 of the vote in : a politician claims that she will receive 63 of the vote in an upcoming election. the results of a properly designed
Compute the break - even number of seats sold ona single : fly-by-night airways provides air transportation servicesbetween new york and miami. a single new york to
A set of blocks painted three colors is on a table in : a set of blocks painted three colors is on a table in front of you some in bag 1 and some in bag 2. the colors are blue
Moreover the correlation between male and female life : life expectancies for men and women were measured by country. it was found that the average male life expectancy was

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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