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 = 
Degree of operating leverage = 7.8
Answer:
A.Incremental income(loss)
Sales as scrap $39,000
Rework $41,600
B.The company should REWORK
Explanation:
A. Sales as Scrap Rework
Sales of scrap units ($13,000×3.00)
$39,000
Sales of rework units ($13,000×8.20)
$106,600
Cost to rework units($13,000×5.00) $65,000
Incremental income(loss)
$39,000 $41,600
B.Therefore the company should REWORK
($106,600-$65,000)
=$41,600
Answer:
I would fire Gary.
Explanation:
Even if Gary has a better sales record, he seems to be unable to keep good personal relationships, both with coworkers and clients. This in the long-run could become more problematic and lead to a decline in sales record, and also, a decline in other areas.
Brenda, on the other hand, needs to improve her sales record, but she has strong interpersonal skills that give her an advatange. It is easier to teach a person how to sell than how to be a well-mannered person, therefore, in theory, if should not be so difficult to help Brenda reach higher sales.
Answer:
Retained earnings would be debited and inventory would be credited for $10 million each.
Explanation:
In the given scenario Al Dente Pasta Company overstated its inventory by $10 million.
This is an overstatement of assets of the company.
This also gives an understatement of the retained earnings of the company.
Adjusting entry in 2022 will now require Retained earnings would be debited and inventory would be credited for $10 million each.
