1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
djyliett [7]
3 years ago
5

SungSam Enterprises reports the following data: Sales $340,000 Variable costs 180,000 Contribution margin $160,000 Fixed costs 8

0,000 Income from operations $ 80,000 Determine SungSam Enterprises's operating leverage.
Business
1 answer:
grandymaker [24]3 years ago
7 0

Answer:

SungSam Enterprises's operating leverage is 2.0

Explanation:

Operating leverage is a financial efficiency ratio to measure the degree to which a firm or project can increase operating income by increasing revenue.

Operating leverage is calculated by using following formula:

Operating leverage = Contribution margin/Net income

SungSam Enterprises has Contribution margin of $160,000 and Income from operations of $80,000

SungSam Enterprises's operating leverage = $160,000/$80,000 = 2.0

You might be interested in
Does the reserve banks determine tax rates?
Anna [14]
The most straightforward way to calculate effective tax rate is to divide the income tax expenses by the income earned before taxes. For example, if a company earned $100,000 and paid $25,000 in taxes, the effective tax rate<span> is equal to 25,000 / 100,000 or 0.25.

I hope my answer has come to your help. God bless and have a nice day ahead!

</span>
4 0
3 years ago
Sommer Corporation began the year with cash of $130,000 and land that $55,000. During the year Sommer earned service revenue of
kirza4 [7]

Answer:

How much net income (or net loss) did Sommer experience for the year?

$11000

Explanation:

earning                  280000

Expenses salaries  159000

Expenses rent           85000

Expenses Utilities   25000

Net Income             11000

4 0
3 years ago
What do the europeon union and the world trade organization have in common
JulijaS [17]

The European union and the World trade organization  have trade policy as common.

<u>Explanation: </u>

World Trade Organization (WTO) comprises governments and border control territories that establish, implement, and enforce international trade rules. European Union and the individual EU Member States are members of WTO.

To make sure that rules-based global trade process, the WTO is involved. Despite the deadlock in negotiations, ways are being examined to upgrade WTO rules and tackle new international challenges.

New developments in the WTO trade rules have been brought about by the coming into effect of the Trading Facilitation Agreement in February 2017. Parliament passes legislation in conjunction with the Council under the Treaty of Lisbon and has a major accountability role on global trade policy.

4 0
3 years ago
About __________ of the world's population lives in the thirty-five low-income economies, where most people engage in agricultur
vichka [17]

Answer:

About HALF of the world's population....

Explanation:

As quoted by world Bank in 2005.

8 0
3 years ago
Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
OlgaM077 [116]

Answer:

The SEC is the correct answer

Explanation:

School is a drag

5 0
4 years ago
Read 2 more answers
Other questions:
  • segment of Mega Inc., manufactures and sells blankets. The various models of blankets are produced in a single factory using sta
    15·1 answer
  • what is the main difference between the roles of state and federal judges and other elected officials
    8·2 answers
  • An advertisement designed to get mothers to buy a certain type of cereal should
    11·1 answer
  • Assume that you receive a check of $500 on your 25th birthday five years from now (Year 5). You plan to put that money in the ba
    13·1 answer
  • Strengths and weaknesses of the three basic types of economies
    8·1 answer
  • Which of the following statements about multitasking is true? Group of answer choices It helps productively complete more than o
    8·1 answer
  • which is true:_______A. high p/e ratio could mean that the company has a great deal of uncertainty in its future earningsB. low
    15·1 answer
  • Jeanne is 54 years old. She had worked as a medical research librarian for ten years before quitting in her late forties. She wa
    9·1 answer
  • During the busiest season of the year, your customer support center receives a higher call volume than planned. However, you can
    9·1 answer
  • A professional soccer player was disciplined for failing to abide by a team policy which required all players to stand for a mom
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!