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
brainly.com/question/24278932
#SPJ4
Answer:
The correct answer is letter "C": certification of false financial statements.
Explanation:
The Sarbanes-Oxley Act (SOX) is a statute that aims to increase corporate governance and enhance internal control of companies. SOX's primary purpose is to protect stakeholders from false corporate financial statement representations. Investors must know that the financial information on which they rely is accurate and that their accuracy has been checked by an independent third party.
<em>Altering, destroying, covering-up or falsifying information in the financial statements of a firm is considered a crime since the SOX implementation with a maximum sentence of 20 years.</em>
Answer: Option (C) is correct.
Explanation:
Units Started into the production = 14,000 Units
Ending work in process = 2,000 units
Transferred Units = Units in the starting - Ending work in process
= 14,000 units - 2,000 Units
= 12,000 Units
Equivalent units = Transferred units + Ending work in process in units × % of Completion
= 12,000 Units + 2,000 Units × 25% complete
= 12,000 + 2,000 × 0.25
= 12,000 units + 500 units
= 12,500 units
Total Conversion cost = $52,500

= $4.2