A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. Based on this, which company has the greater operating leverage? O Company A O Company B
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- Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment.If a firm has a contribution margin of $59,690 and a net income of $12,700 for the current month, what is their degree of operating leverage? A. 0.18 B. 1.18 C. 2.4 D. 4.7Profit Margin, Investment Turnover, and ROI Briggs Company has an operating income of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the return on investment. a. Profit margin % b. Investment turnover c. Return on investment %
- 1. Assuming that sales revenue is increases by 10 percent, calculate the net income of DEF Company, 2. assuming that sales revenue is increases by 10 percent, find out the net income of ABC Company.Question # 4 From the following income statement of Sundahl company, for the year 1 & 2: (a)Calculate operating, financial and combined leverage of both years and explain its interpretation. Which year has the greater amount of business risk and why? • The cost of goods sold comprises of 60% fixed cost and remaining variable cost. (b) Sundahl Company Income Statements For the Years 1 and 2 Year 1 Year 2 Sales $ 2,000,000 (1.400,000) $ 600,000 $ 1,800,000 Less: Cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses Operating income Less: Interest expense Income before taxes (1,200,000) $ 600,000 (300,000) (300,000) (100,000) (110.000) $ 200.000 (50,000) $ 190,000 (40,000) $ 150,000 150,000 Extract the necessary financial ratios and explain its interpretation. Question # 5 Explain the basic obiectives of financial decision making in differentProfit Margin, Investment Turnover, and ROI Briggs Company has operating income of $72,576, invested assets of $224,000, and sales of $806,400. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %
- Profit Margin, Investment Turnover, and ROI Briggs Company has income from operations of $132,756, invested assets of $299,000, and sales of $1,106,300. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment %Assume a company reported the following results: Sales Net operating income Average operating assets Margin Turnover Return on investment (ROI) The margin is closest to: $ 300,000 ? $ 187,500 ? ? 35%Required: a. Firm D has net income of $54,000, sales of $1,200,000, and average total assets of $750,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $132,000, sales of $2,200,000, and ROI of 9.6%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 12%, average total assets of $1,500,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm D has net income of $54,000, sales of $1,200,000, and average total assets of $750,000. Calculate the firm's margin, turnover, and ROI. Note: Do not round intermediate calculations. Round your answers to 1 decimal place. Margin Turnover ROI % %
- Required: a. Firm D has net income of $54,250, sales of $1,085,000, and average total assets of $775,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $100,100, sales of $1,540,000, and ROI of 7.15%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 13.00 %, average total assets of $1,600,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm F has ROI of 13.00 %, average total assets of $1,600,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Note: Do not round intermediate calculations. Round "Turnover" answer to 2 decimal places. Margin Sales Net income % Required: a. Firm D has net income of $54,250, sales of $1,085,000, and average total assets of $775,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $100,100, sales of $1,540,000, and ROI…Required: a. Firm D has net income of $39,000, sales of $1,300,000, and average total assets of $650,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $141,600, sales of $2,360,000, and ROI of 12%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 60.00%, average total assets of $325,000, and turnover of 4.00. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm D has net income of $39,000, sales of $1,300,000, and average total assets of $650,000. Calculate the firm's margin, turnover, and ROI. Margin Turnover ROI %6 9625 -When vertical analysis is applied to the income statement of a business with net sales of 1,000,000 TL and marketing expenses of 88,000 TL, which of the following is the vertical analysis value of marketing expenses (%)?a)10.8 B)50 NS)9.9 D)8.8 TO)30.5
