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1 year ago

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows.

1 answer:

4 0

Using the degree of operating leverage, the estimated impact on net operating income of a 5 % increase in sales is 6.45%.

The degree of operating leverage (DOL) measures how much a company's operating income varies in response to sales fluctuations.

The DOL ratio assists analysts in determining how changes in sales affect company earnings.

Because a company with high operating leverage has a high proportion of fixed costs, a significant increase in sales can result in significant changes in profits.

If sales increase by 5%, the calculation for increased Net Operating Income is as follows:

Increase in Net Operating Income = Sales Increase x Degree of Operating Leverage

= 5% x 1.29

= 6.45%

Hence, Using the degree of operating leverage, estimated impact on net operating income of a 5 % increase in sales is 6.45%.

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Which investment has the least amount of risk?

wariber [46]

Standard deviation = $300, expected return = $5,000 has the least amout of risk.

If preserving capital is important to you, there are many options to consider when it comes to bonds and bond mutual funds. Low risk means low return, but many people, such as retirees and those who need access to savings for specific short-term needs, want some return to sleep at night. I think it's okay to withhold.

With that in mind, here are the eight leading options in Rector, the low-risk segment of the fixed income market. They don't offer exceptional yields, but that's not the point.

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3 0

1 year ago

Which is true of an intrapreneur?

kozerog [31]

Answer:

I belive it would be A

Explanation:

This most matches the defenition

3 0

2 years ago

Ula purchased stock in Purple, Inc., six years ago for $150,000. Purple has assets with a value of $225,000 ($175,000 basis) and

elena55 [62]

Answer:

$15,000 gain

Explanation:

Assets with a value of $225,000

Remaining asset (cash) to Ula ($25,000)

Purple liabilities ($60,000)

Balance $140,000

Balance Brought forward $140,000

Remaining asset (cash) to Ula $25,000

Ula purchased stock ($150,000)

Balance $15,000 gain

$225,000-$25,000-$60,000=$140,000+$25,000-$150,000=$15,000 gain

Therefore we have $15,000 gain.

3 0

3 years ago

Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($40,00

lana [24]

Answer:

$2,100

Explanation:

Particulars Fair market value Basis Differences

Inventory $60,000 $30,000 $30,000

Account receivables $40,000 $40,000 $0

Equipment $60,000 $80,000 ($20,000)

Taxable gain $10,000

Tax rate 21%

Built in gains tax $2,100 

So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.

3 0

3 years ago

Nikola, a salesperson at a cosmetic firm, gives a sales presentation to Jarvis. When she begins her sales presentation, Jarvis a

hammer [34]

Answer:

D. The halo effect

Explanation:

Bias occurs when an individual lacks objectivity and impartiality in making decisions. There are various kinds of bias. However, in this scenario, the bias associated with here is the halo effect. The halo effect is a form of bias in which an individual opinion or feel concerning an individual or an event is influenced by the impression the individual gets from the other individual or event. It is when an overall judgement is made on an individual based on some specific characteristics or traits of the person. In this case, because of the polite and nice characteristics of the salesperson, Jarvis assumes that she's an effective salesperson. Of which those characteristics has nothing to do with effectiveness in sales.

5 0

3 years ago

Read 2 more answers