Question

Serfass Corporation's contribution format income statement for July appears below: Sales $ 448,500 Variable expenses 224,250...

Serfass Corporation's contribution format income statement for July appears below:

Sales $ 448,500
Variable expenses 224,250
Contribution margin 224,250
Fixed expenses 58,310
Net operating income $ 165,940

The degree of operating leverage is closest to:

Multiple Choice

  • 0.37

  • 0.74

  • 2.00

  • 1.35

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
4. ABC Company has the following contribution format income statement: Sales $364,500 Variable Expenses $112,000 Contribution...
4. ABC Company has the following contribution format income statement: Sales $364,500 Variable Expenses $112,000 Contribution Margin $252,500 Fixed Expenses $194,100 Net Operating Income $58,400 The degree of operating leverage is closest to: a. 6.24 b. 0.68 c. 0.17 d. 4.32
Eneliko Company installs home theater systems. The company’s most recent monthly contribution format income statement appears...
Eneliko Company installs home theater systems. The company’s most recent monthly contribution format income statement appears below: Amount Percent of Sales Sales $ 123,000 100% Variable expenses 49,200 40% Contribution margin 73,800 60% Fixed expenses 24,000 Net operating income $ 49,800 Required: 1. Compute the company’s degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2. Using the degree of operating leverage, estimate the impact on net operating income of a 16% increase in...
Q2. The following is Addison Corporation's contribution format income statement for last month: sales..................................$1,000,000 variable expenses........_700,000________...
Q2. The following is Addison Corporation's contribution format income statement for last month: sales..................................$1,000,000 variable expenses........_700,000________ contribution margin.......300,000 fixed expenses----------_____180,000______ net operating income........$120,000 The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. 1. CM: 2. Unit CM: 3. CMR: 4. BEP sales(units): 5. BEP sales($): 6. If the company sells 100 more units, net operating income will increase by $_______________.
The following is TJLS Corporation's contribution format income statement for last month: Sales $1,200,000 Less: Variable...
The following is TJLS Corporation's contribution format income statement for last month: Sales $1,200,000 Less: Variable Expenses: $800,000 Contribution Margin: $400,000 Less: Fixed Expenses: $300,000 Operating Income: $100,000 5. What is the company's margin of safety in dollars? 6. What is the company's degree of operating leverage? Explain how a company could use this number in terms a non-accountant could understand. 7. If the tax rate is 30%, how many units must be sold to attain an after-tax profit of...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):      Sales $ 23,900       Variable expenses 13,300       Contribution margin 10,600       Fixed expenses 7,632       Net operating income $ 2,968         Required: What is the degree of operating leverage Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range...
  Bois Corporation has provided its contribution format income statement for January. Sales $ 426,400...
  Bois Corporation has provided its contribution format income statement for January. Sales $ 426,400 Variable expenses 260,000 Contribution margin 166,400 Fixed expenses 120,900 Net operating income $ 45,500 If the company's sales increase by 7%, its net operating income should increase by about: Multiple Choice 11%, 7%, 26% ,66%
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 15,000 Variable expenses 9,000 Contribution margin 6,000 Fixed expenses 3,120 Net operating income $ 2,880 11. What is the margin of safety in dollars? What is the margin of safety percentage? margin of safety in dollars____ margin of safety percentage____ 12. What is the degree of operating leverage? (Round your...
The following is Allison Corporation's contribution format income statement for December 2014: Sales $800,000 Less: variable...
The following is Allison Corporation's contribution format income statement for December 2014: Sales $800,000 Less: variable expenses 300,000 Contribution margin 500,000 Less: fixed expenses 400,000 Operating income $100,000 The company had no beginning or ending inventories. The company produced and sold 10,000 units in December. Required: Assuming no change in either the cost structure or the average selling price, prepare a contribution format income statement for a month Allison Corporation reports no before-tax profit or loss: Short AnswerToolbar navigation opens...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 105,000 Variable expenses 73,500 Contribution margin 31,500 Fixed expenses 27,720 Net operating income $ 3,780 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement...
Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $ 124,000 100 % Variable expenses 49,600 40 % Contribution margin 74,400 60 % Fixed expenses 15,000 Net operating income $ 59,400 Required: 1. What is the company’s degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 19% increase in sales. 3. Construct a new contribution format...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT