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OLga [1]
3 years ago
6

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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2 years ago
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Ronald suffers from dementia that impacts his brain function, but he also has healthy periods of time when his mind is fully fun
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Answer:

2. False

Explanation:

Capacity to a contract refers to whether the person to a contract is legally competent to enter into such a contract.

For instance, lunatics, drunkards, minors, criminals and person of unsound mind are deemed incapable of entering into a contract.

A person diagnosed with dementia, which impairs his decision making would normally be regarded as incapable to signing a contract.

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3 years ago
Harry was on the phone negotiating the terms of a contract for the purchase of ball caps containing his university's logo with A
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Explanation:

The Uniform Commercial Code (UCC) utilizes the Statute of Frauds which states that contracts for goods worth over $500 in value are to be signed for them to be valid.  

The goods here are worth:

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3 years ago
For Crafton Company, indirect labor is budgeted for $57,000 and factory supervision is budgeted for $65,000 at normal capacity o
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Answer:

$124,700

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