A)Degree of operating leverage=Contribution/EBIT
=6400,000/2140000=2.99.
B) Degree of operating leverage=Contribution/EBIT
=5600,000/1340000=4.18
C) Degree of operating leverage=Contribution/EBIT
=7600,000/1015000=7.49
One conclusion that companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.
The Operating Leverage formula is used to calculate a company's break-even point, helping to set a reasonable selling price that covers all costs and produces a profit. This gives you insight into how well your company is using fixed-cost items such as inventory and machinery to make a profit. The more profit a company can extract from the same amount of fixed assets, the higher its operational leverage.
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Answer:
(a) Income Statement
Belyk Paving Co.
Income statement for the year xxxx
Sales $2,384,000
Cost of goods sold $1,441,000
Gross Profit $943,000
Administrative and selling expenses $436,600
Depreciation expense $491,600
Operating Income 14,800
Interest expense $216,600
Income before Tax ($201,8000)
Tax rate 35% <u> $0 </u>
Net Loss <u>($201,800)</u>
(b) operating Cash flow
Net Loss ($201,800)
Add: Non cash Expenses (Depreciation) <u> $491,600</u>
Cash flow from operating activities <u> $289,800 </u>
Answer:
B
Explanation:
You have to pay for a vaccination, and people want and sometimes need the vaccine. The taxes the hospital pays are from the public indirectly. Therefore, vaccinations are sources of the public good.
enforceable, legality
For a contract to be enforceable it must meet the requirement of legality and both the subject matter and the performance of the contract must be legal
An agreement to be a contract must establish a duty that is enforceable by law by the provisions of contract laws. Any arrangement that does not provide for enforceability—that is, one in which the parties cannot seek redress in court for breach of the agreement s not a contract. To create legality in a relationship, the contract must have intent. It happens when the parties are aware that each of them is responsible for the contract's failure if they fail to keep their part of the contract.
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The objective of general-purpose financial reporting in the conceptual framework is to provide financial information about the entity to investors and lenders.
General-purpose financial reporting is the report that a business entity gives about its financial health, credit history, assets, etc. to present or prospective investors, lenders such as banks and financial institutions, to enable them to decide whether or not to provide loans to the entity or purchase shares in it.
The information may also be used by other entities such as credit analysts and stock market players. General-purpose financial statements may also include the income statement, balance sheet, record of cash flows, information about shareholder’s equity, and other disclosures.
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