Good are things that you can physically have but services are like someone cleaning your house
Answer:
= 1.73
Explanation:
For computation of degree of operating leverage first we will find out the operating income which is shown below:-
Particulars Amount
Sales $240,000 (3000 × $80)
Variable expenses $84,000 (240,000 × 35%)
Contribution margin $156,000
Fixed Costs $66,000
Operating income $90,000
Degree of operating leverage = Contribution margin ÷ Operating income
= $156,000 ÷ $90,000
= 1.73
Answer:
b. $1,140,000
Explanation:
To get the total variable cost, we need to first get the sales.
Sales = Contribution / Margin ratio
= $380,000 / 25%
= $1,520,000
Therefore,
Total variable costs would be
= $1,520,000 * 75% [100% - 25%]
= $1,140,000
Answer:
false
Explanation:
S corporation form of business ownership is one type of corporation. It is a corporation whose shareholders have elected to become an S corporation. The formation of this form of business structure is not easy. First, a corporation is formed as per the requirements of the laws. Some requirements include drafting of articles and memorandum of association, appointing directors, and registering the corporation.
The shareholder can then apply to be an S incorporation if they meet the requirement. Some of them are
1. Should not have more than 100 shareholders
2. Shareholders should be individual or some exempt entities.
3. Have one class of stock