How to find what is the operating leverage

Assignment Help Accounting Basics
Reference no: EM132572562

Question 1: CANDY SHOP is a candy stand in a mall. The average selling price of a 100 g of candy is $2.5 and the average variable expense per 100 g is $0.8. The average fixed expense per month is $2,300. An average of 42 KG is sold each month. What is the break-even sales in Dollars?

Option 1: $2628

Option 2: $3628

Option 3: $2644

Option 4: $3644

Question 2: Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. An average of 2,100 cups are sold each month. What is the operating leverage?

Option 1: 0.34

Option 2: 2.92

Option 3: 0.45

Option 4: 2.21

Reference no: EM132572562

Questions Cloud

How much depreciation expense and will be recorded : On July 1, 2015, Nuby Trucking Company, How much depreciation expense $ and will be recorded for the truck during the year ended December 31, 2015?
Important areas of financial management : Capital budgeting represents one of the most important areas of Financial management.
Critically think like a psychologist : Intent of this Assignment is for you to critically think like a Psychologist - require some creative thinking and curiosity on your part
Recent information on larger or well-known companies : Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on the NASDAQ to analyze.
How to find what is the operating leverage : The average fixed expense per month is $2,300. An average of 42 KG is sold each month. What is the break-even sales in Dollars?
Find the amount invested at rate : A person invested ?$7700 for 1? year, part at 5?%, part at 11%, and the remainder at 12?%. The total annual income from these investments
Prepare the journal entries to record the repayment of bonds : The market price of Francine Ltd. common shares is set at $92. Prepare the journal entries to record the repayment of the bonds
Value of a share of texas trucking : Based upon the price earnings multiple, the value of a share of Texas Trucking is closest to:
The organization innovative progression : Create a concept map illustrating the organization's innovative progression that led to its success.

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