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Neporo4naja [7]
3 years ago
11

Bristo Corporation has sales of 2,080 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expe

nses are $68,000, the degree of operating leverage is:____________
Business
1 answer:
Mumz [18]3 years ago
3 0

Answer:

Degree of operating leverage = 7.8

Explanation:

given data

sales = 2,080 units

per unit price  = $50

Variable expenses = 25%

total fixed expenses = $68,000

solution

we get here Degree of operating leverage that is express as

Degree of operating leverage = Sales - variable cost ÷ (sales - variable cost - fixed cost)   .......................1

here

Sales = 2080 × 50  = 104000

and

Variable cost = 104000  × 25%  = 26000

so now put value in equation 1 we get

Degree of operating leverage = \frac{104000-26000}{104000-26000-68000}  

Degree of operating leverage = 7.8

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Troyanec [42]

Answer: Savings account

Explanation:

5 0
3 years ago
On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,177. During the first 11 months of the ye
Aleks [24]

Answer:

Th etotal accounts written off during 11 months is $ 24,677

Explanation:

Computation of amounts written off

The movement in the allowance account is as per the following formula

Opening balance + Bad Debts Expense - Amounts written off = Ending balance

$ 13,177 + $ 21,273 - Amounts written off = $ 9,773

By solving the equation

Amounts written off = $ 13,177 + $ 21,273 - $ 9.773 = $ 24,677

In other words, the bad debts expense for the year plus the movement in the allowance balance represents the amounts written off

6 0
3 years ago
2. Skip and Peggy are brother and sister and they fight about everything. Skip says that perfectly competitive firms maximize pr
finlep [7]

Answer: They are both right.

Explanation:

Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.

Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.

With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.

5 0
4 years ago
A company reports the following: Net income $410,000 Preferred dividends $60,000 Shares of common stock outstanding 50,000 Marke
Vadim26 [7]

Answer:

12

Explanation:

Calculation to determine Determine the company's price-earnings ratio

First step is to calculate the Earnings per Share

on Common Stock

Earnings per Share

on Common Stock = ($410,000 – $60,000) ÷ $50,000

Earnings per Share on Common Stock = $7

Now let calculate thecompany's price-earnings ratio

Price-Earnings Ratio = $84÷$7

Price-Earnings Ratio = 12

Therefore the company's price-earnings ratio is 12

4 0
3 years ago
Which of the following is not true regarding the outcome of a consumer’s optimization process? Group of answer choices a.the con
Vlada [557]

Answer:

Option A                      

Explanation:

The expenditure limit reflects the profits of a customer, so efficiency happens when customers may reach the lowest potential curve of disregard towards their income bracket.  In other terms, there will be less use of another product, when more of that item is eaten.

Thus, if we carefully focus then we can realize that the whole point of doing customer optimization is to make sure that customer gets clear about their preferences.  

4 0
3 years ago
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