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3 years ago

If sales are $400,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage

Business

1 answer:

viva [34]3 years ago

3 0

Answer:

operating leverage= 0.17

Explanation:

Giving the following information:

Sales= $400,000

Variable costs= 75% of sales

Operating income= $40,000

To calculate the operating leverage, we need to use the following formula:

operating leverage= fixed costs/total costs

Fixed costs= (400,000*0.25) - 40,000= 60,000

Total costs= 400,000*0.75 + 60,000= 360,000

operating leverage= 60,000/360,000

operating leverage= 0.17

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Use the following data to compute total manufacturing costs for the month:

Akimi4 [234]

Answer:

$132,300

Explanation:

The total manufacturing costs for the month can be calculated as follows

Direct labor + indirect materials + factory manager salary + indirect labour + direct materials + depreciation on factory equipment

= 40,600 + 16,200 + 8,200 + 10,000 + 7,300 + 41,500 + 8,500

= $132,300

Hence the total manufacturing costs if $132,300

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3 years ago

Causes and effects of International Factor Mobility

tatiyna

Answer:

Domestic factor mobility. refers to the ease with which productive factors like labor, capital, land, natural resources, and so on can be reallocated across sectors within the domestic economy. Different degrees of mobility arise because there are different costs associated with moving factors between industries.

Explanation:

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3 years ago

During the ________ of the product life cycle, the growth of a product begins to plateau, and the company must take advantage of

natulia [17]

Answer:

During the growth stage of the product life cycle, the growth of a product begins to plateau, and the company must take advantage of economies of scale and marketing messages and promotions that seek to remind customers about a great product, differentiate from competitors, and reinforce brand loyalty.

Explanation:

Hope this helped

4 0

2 years ago

Of those listed below, the best example of a pure public good is a. a public school b. a radio broadcast c. a hardcover copy of

Rufina [12.5K]

Answer:

b. a radio broadcast

Explanation:

The pure public good is a good which is non-rivalrous and non-excludable. Non-rivalrous represents that the goods does not diminshed in the case when more people consumed it while on the other hand, the non-excludable represents that the goods are available to all

Therefore as per the given options, the option b is correct

hence, the other options are incorrect

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2 years ago

Compute and select the correct common-size percent for each account title.Total Assets is $700,000 Accounts Payable is $75,000 B

Arisa [49]

Answer and Explanation:

The computation for each corrected common-size percent for each account is shown below:

Particulars Amount Percentage

Total assets $700,000 100%

Accounts payable $75,000 10.71%

($75,000 ÷ $700,000)

Bonds payable $225,000 32.14%

($225,000 ÷ $700,000)

Common stock $300,000 42.86%

($300,000 ÷ $700,000)

Retained earnings $100,000 14.29%

($100,000 ÷ $700,000)

Therefore each one of assetm liabilities and stockholder equity is presented as a percentage of total assets and the same is to be considered

3 0

3 years ago