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Pproblems 1-3 1.Alpha Corporation reported the following data for its most recent year: sales, $610,000; variable expenses, $305,000; and fixed expenses, $244,000. The company's degree of operating...

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Pproblems 1-3
1.Alpha Corporation reported the following data for its most recent year: sales, $610,000; variable expenses, $305,000; and fixed expenses, $244,000. The company's degree of operating leverage is:
a.1
b. 5
3. 2.0
4. 10
2. Sperberg Corporation's operating leverage is 4.1. If the company's sales increase by 13%, its net operating income should increase by about:
a. 13.0%
b. 3.2%
c. 53.3%
d. 38.7%
3.
Minist Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $225,000 and its net operating income was $38,500. If fixed expenses totaled $74,000 for the year, the break-even point in unit sales was:

a. 11,250
b. 13,175
c. 5,625
d. 7,400
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1.Alpha Corporation reported the following data for its most recent year: sales, $610,000; variable expenses, $305,000; and fixed expenses, $244,000. The company's degree of operating leverage is:rev: 02_03_2015_QC_CS-6368 a.1 b. 5 3. 2.0 4. 10 2. Top of Form 2. Sperberg Corporation's operating leverage is 4.1. If the company's sales increase by 13%, its net operating income should increase by about:a. 13.0% b. 3.2% c. 53.3% d. 38.7% 3. Minist Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $225,000 and its net operating income was $38,500. If fixed expenses totaled $74,000 for the year, the break-even point in unit sales was:  a. 11,250 b. 13,175 c. 5,625 d. 7,400 4. Top of Form 4. Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $40,000 and variable expenses of $11,680. Product P42T had sales of $53,000 and variable expenses of $16,220. The fixed expenses of the entire company were $46,150. The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)a. $74,050 b. $65,889 c. $46,150 d. $65,929 5. Puchalla Corporation sells a product for $130 per unit. The product's current sales are 12,400 units and its break-even sales are 11,036 units. The margin of safety as a percentage of sales is closest to:88% 12% 11% 89% Bottom of Form Bottom of Form

Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
119 Votes
1.Alpha Corporation reported the following data for its most recent year: sales, $610,000; variable expenses, $305,000; and fixed expenses, $244,000. The company's degree of operating leverage is:
ev: 02_03_2015_QC_CS-6368
a.1
. 5
3. 2.0
4. 10
Contribution margin = Sales - Variable expenses = $610,000 - $305,000 = $305,000
Profit = Contribution margin - Fixed expenses = $305,000 - $244,000 = $61,000
Degree of operating leverage = Contribution margin/Net operating income = $305,000/$61,000 = 5
2. Top of Form
    2. Spe
erg Corporation's operating leverage is 4.1. If the company's sales increase by 13%, its net operating income should increase by...
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