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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%.

Learn more about operating leverage:

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You are selling a product in an area where 30 % of the people live in the city and the rest live in the suburbs. Currently 20 %

irina1246 [14]

Answer:

a). I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is greater than final city dwellers' (0.075 x)

b). The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

Explanation:

a). We can make the following expressions;

Total number of both city dwellers and suburb dwellers=x

City dwellers=30% of x=(30/100)×x=0.3 x

Suburb dweller=70% of x=(70/100)×x=0.7 x

Total number of city dwellers who use your product initially=(20/100)×0.3 x=0.06 x

Total number of suburb dwellers who use your product initially=(10/100)×0.7 x=0.07 x

If we increase the market share in the suburbs by 15%

Number of suburb dwellers=0.07 x+(15/100)×0.07 x

Number of suburb dwellers=(0.07 x+0.0105 x)=0.0805 x

If we increase market share in the city by 25%

Number of city dwellers=0.06 x+(25/100)×0.06 x

Number of city dwellers=(0.06 x+0.015 x)=0.075 x

I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is greater than final city dwellers' (0.075 x)

b). Percentage of city dwellers that own your product

Percentage=(Initial number of city dwellers/Total number of people)×100

Percentage=0.06 x/(0.06 x+0.07 x)=(0.06 x/0.13 x)×100=46.15%

The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

8 0

3 years ago

Cleveland Company purchased $2,700 of inventory on account from Pinto Industries on March 8th. The terms were 2/15, n/45. Clevel

Gala2k [10]

Solution:

Accounts Payable $2900

Cash $2691

Inventory $209

Cleveland didn't pay during the discount period,

So the amount due is $2,700 - 450 = $2,250

Cash was charged in freight charges prior to delivery of the invoice.

4 0

3 years ago

All of these are open-system characteristics except

NARA [144]

I think the correct answer from the choices listed above is option D. All of these are open-system characteristics except circular causation. It is an action that is controlled or affected by its own status-change or result . Hope this answers the question. Have a nice day.

8 0

3 years ago

An inferior good is Multiple Choice

stealth61 [152]

Answer:

B. not accurately defined by any of these statements.

Explanation:

An inferior good is defined as one whose the quantity demanded decreases as the income of its consumers increases and vice versa.

Option A is incorrect because the income elasticity for inferior goods is negative and therefore, as the income of the consumers increases, the demand curve shifts to the left.

Option C is incorrect because an inferior good does not necessarily mean a fake good. A good can be inferior but yet meet all the standards for approval by the FDA.

Option D is incorrect. The price and quantity demand for inferior goods, just like normal goods do not vary directly. This is only applicable to luxurious goods.

None of the statements in A, C, and D accurately defined an inferior goods.

Hence, the correct option is B.

4 0

3 years ago

Read 2 more answers

HELP ASAP!! DUE TOMORROW!! WILL UPVOTE IF ANSWERED NOW!!

Ratling [72]

You must be able to not only stay calm in worst case situations but do the job properly. example: someone had sadly drown, You need to be calm despite the terror of whoever made the call. you must talk them on how to preform C.P.R and call a ambulance. You can't sound panicked at all and must be kind. You must act as though even if seeingly the person is dead, make it sound like they will live without exactly saying it. This could cause panic and have a possibly life threatening issue.

4 0

3 years ago