Assume that the amounts of the companys total variable

Assignment Help Accounting Basics
Reference no: EM13579445

Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

Reference no: EM13579445

Questions Cloud

In 2014 logan sold 1000 units at 500 each and earned net : 1 briscoe company sells it product for 60 per unit. during 2011 it produced 60000 units and sold 50000 units there are
If the variable cost per unit increases by 1 spending on : if the variable cost per unit increases by 1 spending on advertising increases by 1500 and unit sales increase by 250
How many units must be sold to achieve a target profit of : how many units must be sold to achieve a target profit of 5000?using the degree of operating leverage what is the
Sutherland manufactures and sells 110000 laser printers : sutherland manufactures and sells 110000 laser printers each month. a principal component part in each printer is its
Assume that the amounts of the companys total variable : assume that the amounts of the companys total variable expenses and total fixed expenses were reversed. in other words
On july 25 2010 karen who is single gives stock with a fmv : on july 25 2010 karen who is single gives stock with a fmv of 7500 and a basis of 8000 to bill. karen had purchased the
For 2010 omaha mechanical has a monthly overhead cost : for 2010 omaha mechanical has a monthly overhead cost formula of 42900 6 per direct labor hour. the firms 2010
Melody inherited 1000 shares of corporation zappa stock : melody inherited 1000 shares of corporation zappa stock from her mother who died on march 4 of the current year. her
Multiplastics purchased a machine in january 1 that cost : multiplastics purchased a machine in january 1 that cost 300000 has a residual value of 20000 and a useful life of

Reviews

Write a Review

Accounting Basics Questions & Answers

  Appropriate journal entries that alpine

When should Alpine West recognize revenue from the sale of its season passes? Prepare the appropriate journal entries that Alpine would record on November 6 and December 31.

  Determining per-unit conversion cost

At Frank Company, there are 800 units of ending work in process that are 100% complete as to materials and 40% complete as to conversion costs. If the unit cost of materials is $4 and the costs assigned to the 800 units is $6,000, what is the per-..

  Prepare adjusting entries required of financial statements

prepare adjusting entries required of financial statements for the year ended date of 123111. assume that prepaid

  Question 20 figure 4-1 foster company makes power tools the

question 20 figure 4-1. foster company makes power tools. the budgeted sales are 420000 budgeted variable costs are

  Prepare a comparative multi-step income statement for these

answer the following question. gonser mcgiller corporationtrial balance 000sdecember

  A companys beginning work in process inventory consisted of

a companys beginning work in process inventory consisted of 36000 units that were 15 complete with respect to direct

  During 2014 jkl plans to introduce a new menu item that is

during 2013 the jkl restaurant had sales revenues and food costs of 830000 and 620000 respectively. during 2014 jkl

  Mean shopping time at local super-market

The mean shopping time for the sample of 50 shoppers is 25.36 minutes with a standard deviation of 7.24 minutes. Using the 0.10 level of significance, is there evidence that the mean shopping time at the local supermarket is different from the cla..

  Prepare a balance sheet at december 31 2012 for vivaldi

e5-12 preparation of a balance sheet presented below is the trial balance of vivaldi corporation at december 31 2012

  Cash in a tax-free transaction

Jastoon Co. acquired all of Wedner Co. for $588,000 cash in a tax-free transaction. On that date, the subsidiary had net assets with a $560,000 fair value but a $420,000 book value and income tax basis.

  Goodyear has an equity cost of capital of 85 a debt cost of

suppose goodyear tire and rubber company is considering divesting one of its manufacturing plants. the plant is

  These races will involve four-person teams that race from

tony and suzie graduate from college in may 2012 and begin developing their new business. they begin by offering

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