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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.
Learn more about operating leverage at
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Since Kermit calculated his total asset turnover to be 1.13, this tells Kermit that <span>every dollar of assets generates $1.13 in sales.
</span>Please note that it is useful to add the options provided with the question, in order to get an accurate answer and have your question answered quicker.
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Answer:
The answer is $18,810
Explanation:
Cost of goods sold equal:
Beginning or opening inventory plus purchases minus ending or closing inventory.
Monte Vista returned some inventories and also took advantage of discount. So this will reduce the cost of total purchases for the quarter.
Total purchase = new purchases minus purchase returns minus any discount enjoyed.
So total purchase is now:
$10,000 - $1,350 - $340
=$8,310
Therefore cost of goods sold is:
$44,000 + $8,310 - $33,500
=$18,810
Answer:
Her regular gross pay is $360
Explanation:
Regular gross pay is that pay which the person earn on daily basis or it is a fixed amount which he gets after completing a month.
In the question, we have to find out the regular gross pay which includes the daily earning of a person
So, her regular gross pay is equal to
= number of hours × rate per hour
= 40 × $9
= $360
We don't include overtime wages as it is not included in regular gross pay. So, it is ignored.
Hence, her regular gross pay is $360