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spayn [35]
3 years ago
13

Alpha Corporation reported the following data for its most recent year: sales, $700,000; variable expenses, $490,000; and fixed

expenses, $140,000. The company's degree of operating leverage is closest to
Business
1 answer:
Arlecino [84]3 years ago
6 0

Answer:

3

Explanation:

The computation of the degree of operating leverage is shown below:

= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)

= ($700,000 - $490,000) ÷ ($700,000 - $490,000 - $140,000)

= $210,000 ÷ $70,000

= 3

The (Sales - Variable costs) = Contribution margin

The  (Sales - Variable costs - Fixed costs) = EBIT i.e Earnings before interest and taxes

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Answer:

The correct answer is:  controlling.

Explanation:

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3 years ago
​________ is the extent to which a selection tool produces consistent results over time.
shusha [124]
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Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches
shutvik [7]

Answer:

Fixed Overheads Spending Variance = $5,000 Unfavorable(U).

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Explanation:

Fixed Overheads Spending Variance = Actual Fixed Overheads  - Budgeted Fixed Overheads

                                                              = $305,000 -  $300,000

                                                              = $5,000 Unfavorable(U).

Fixed Overheads Spending Variance = Fixed Overheads at Actual Production  - Budgeted Fixed Overheads

                                                              = ($5.00 × 64,000) - $300,000

                                                              = $320,000 - $300,000

                                                              = $20,000  Favorable (F)

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3 years ago
​Valley, Inc. has​ 9,000 shares of preferred stock outstanding. The preferred stock has a​ $90 par​ value, a​ 14% dividend​ rate
EastWind [94]

Answer:

The dividends payout to preferred stockholders is $113,400 as shown below.

Explanation:

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Preferred shareholders have prior claims to dividends ahead of ordinary shareholders,but after bondholders' interest payments have been settled.

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