All categories

3 years ago

Which of the following scenarios demonstrates the leverage effect on net operating income due to the existence of fixed costs?

Business

1 answer:

morpeh [17]3 years ago

7 0

Answer:

C) A 25% increase in sales resulting in a 30% increase in net operating income.

You might be interested in

How is a demand curve derived from a demand schedule

Basile [38]

Answer:

the demand curve is a graphical representation depicting the relationship between a commodity different price levels and quantities which consumer and willing to buy it is derived from a demand schedule which is the stability of the price and quantity pure that comprise the

8 0

3 years ago

has a standard of 2 direct labor hours per unit. The standard wage rate of each worker is $32.50 per hour. In July, the company

ikadub [295]

Answer:

$130 Favourable

Explanation:

Given the above information,

Standard hours = 2 × 4770 = 9,540

Actual hours = 8,940

Standard rate = $32.50

Then, Direct labor efficiency variance is computed as

= ( Standard hours allowed for production - Actual hours taken) × Standard rate per direct labor hour

= [(2 × 4,770) - 8,940] × $32.50

= [9,540 - 8,940] × $32.50

= 600 × $32.50

= $130 Favourable

6 0

2 years ago

Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of region

Elina [12.6K]

Answer:

a. <u>Labor variances for 14 PT staff: </u>

Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)

= ($50 - $52) x 1.40 x 2,604

= $7291.20 (Unfavorable)

Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate

= [(1.20 * 2,604) - (1.40 * 2,604)] * $50

= [3,124.80 - 3,645.60] * $50

= $26,040 (Unfavorable)

Labor Cost variance = Labor rate variance + Labor efficiency variance

= $7,291.20 (Unfavorable) + $ 26,040 (Unfavorable)

= $33,331.20 (Unfavorable)

<u>Labor variances for 10 SD staff</u>:

Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)

= ($45 - $47) * 1.20 * 1,600

= $3840 (Unfavorable)

Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate

= (1.40*1,600) – (1.20*1,600)]*$45

= [2,240 – 1,920] * $45

= $14,400 (Favorable)

Labor Cost variance = Labor rate variance + Labor efficiency variance

= $3,840 (Unfavorable) + $ 14,400 (Favorable)

= $10,560 (Favorable)

5 0

3 years ago

The Securities Act of 1933 does not apply to the issuance of securities under $5 million. Question 4 options: True False

kogti [31]

Answer:

False

Explanation:

The Securities Act of 1933 requires the registration of all the securities issued and sold ob public markets. This act had some exemptions:

private offerings (if the securities were offered to a certain group of persons and/or institutions)
offerings of a limited size: a very small issuance would be excluded, but remember that $5 million of 1933 are equivalent to more than $98 million today (average annual inflation of 3.48%)
securities issued by government entities
securities issued on intrastate offerings (only traded within a given state)

3 0

3 years ago

Porter Veterinary Services recently purchased several new stock trailers for their equine and bovine clients. The stock trailers

Elina [12.6K]

Answer: Financial

Explanation:

During the process of buying assets with longer life span, such as stock trailers, most organizations make use of cash gotten during financial activities to foot the bills, while cash accrued during operational activities are rather used to buy assets with shorter life span. Generally during the time of investing there is always decrease in excess cash as to supplying cash for some other activities.

4 0

3 years ago