The July contribution format income statement of Doxtater Corporation appears below: Sales $ 564,400 Variable expenses 312,800 Contribution margin 251,600 Fixed expenses 193,800 Net operating income $ 57,800 The degree of operating leverage is closest to: Multiple Choice 0.23 4.35 0.10 9.76

The July contribution format income statement of Doxtater Corporation appears below: Sales $ 564,400 Variable expenses 312,800 Contribution margin 251,600 Fixed expenses 193,800 Net operating income $ 57,800 The degree of operating leverage is closest to: Multiple Choice 0.23 4.35 0.10 9.76

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

V. A company’s contribution format income statement for the previous follows: AmountSales P300,000Variable expenses 120,000Contribution margin 180,000Fixed expenses 108,000Net operating income P72,000 Required:a. Compute the company’s degree of operating leverage. b. Using the computed degree of operating leverage, estimate the effect on net operating income of a 5% increase in sales. c. Prepare an income statement using contribution format to verify your answer in (b)
The February contribution format income statement of Tipton Corporation appears below: O 0.27 O 6.79 O 3.70 Sales O 0.15 Variable expenses The degree of operating leverage is closest to: Contribution margin Fixed expenses Net operating income. $ $ 211,200 96,000 115,200 84,100 31,100
The February contribution format income statement of Mcabier Corporation appears below: Sales $ 211,200 Variable expenses 96,000 Contribution margin 115,200 Fixed expenses 84,100 Net operating income $ 31,100 The degree of operating leverage is closest to: a/ 0.27 b/ 6.79 c/ 3.70 d/ 0.15
Complete each of the following contribution format income statements by supplying the missing numbers. a. b. c. d. Sales revenue $ $485,168 $ $686,356 Variable expenses 232,804 102,728 Contribution margin 130,532 171,860 430,808 Fixed expenses 87,912 146,396 Operating income 21,597 Income taxes 25,184 21,532 60,859 Net income $15,118 $ $64,596 $182,577
20. The following is a summarized income statement of CoolKid Co.'s profit center No. 44 for March: Contribution margin Period expenses: P70,000 Manager's salary Facility depreciation Corporate expense allocation Profit center income P20,000 8,000 (33,000) P37.000 5,000 Which of the following amounts is most likely subject to the control of the profit center's manager? А. P70.000 P50,000 C. P37,000 D. P33,000 B,
Crossfire Company segments its business into two regions-East and West. The company prepared a contribution format segmented income statement as shown below: Sales Variable expenses Contribution margin Traceable fixed expenses Total Company $1,035,000 828,000 207,000 136,000 East $ 690,000 579,600 110,400 59,000 $ 51,400 West $ 345,000 248,400 96,600 77,000 $ 19,600 Segment margin Common fixed expenses 71,000 60,000 Net operating income 11,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement based on the break-even dollar sales that you computed ig requirements 2 and 3. Use the same format as shown above. What is Crossfire's net operating income (loss) in your new segmented income statement? 5. Do you think that Crossfire should allocate its common fixed expenses to the East and West…
A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000
Georgetown Corporation has two major business segments-Hats and Scarfs. Data concerning those segments for October appear below: Sales revenues, Hats $130,000 Variable expenses, Hats $66,000 Traceable fixed expenses, Hats $17,000 Sales revenues, Scarfs $540,000 Variable expenses, Scarfs $270,000 Traceable fixed expenses, Scarfs $92,000 Common fixed expenses totaled $153,000. Required: Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts. the break-even point in sales for the company as a whole. No Heading Required. Also calculate
Saved Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Sales Variable expenses Contribution margin Traceable fixed expenses Total Company $ 750,000 450,000 300,000 144,000 North $ 500,000 350,000 150,000 72,000 South $ 250,000 100,000 150,000 72,000 $ 78,000 Segment margin 156,000 2$ 78,000 Common fixed expenses 59,000 Net operating income $ 97,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1 Dollar sales for company to break-even 2. Dollar sales for North segment to break-even 3. Dollar sales for South segment to break-even 2 of 4 Next > < Prev
Data for January for Blondi Corporation and its two major business segments, North and South, appear below Sales revenues, North Variable expenses, North Traceable fixed expenses, North Sales revenues, South Variable expenses, South Traceable fixed expenses, South In addition, common fixed expenses totaled $179.000 and were allocated as follows: $93,000 to the North business segment and $86.000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Multiple Choice $7,000) $172,000 $351,000 $496,000 $660,000 $ 383,000 $ 79,000 s 510,000 $ 291,000 $ 66,000
Net Income Planning Selected operating data for Oakbrook Company in four independent situations are shown below. Fill in the blanks for each independent situation. Sales Variable expense Fixed expense Net income (loss) before tax Units sold Unit contribution margin Contribution margin ratio $ $ A $350,000 0 a. 0 b. $25,000 30,000 $5.20 $ B 0 C. $ $ $111,000 $62,000 $15,000 0 d. $7.00 C 0 e. 0 f. $ $53,200 $28,800 0.4 D $520,000 0 g. $178,000 $(22,000) 0 h.
Crossfire Company segments its business into two regions—East and West. The company prepared a contribution format segmented income statement as shown below: Total Company East West Sales $ 915,000 $ 610,000 $ 305,000 Variable expenses 732,000 518,500 213,500 Contribution margin 183,000 91,500 91,500 Traceable fixed expenses 111,000 51,000 60,000 Segment margin 72,000 $ 40,500 $ 31,500 Common fixed expenses 60,000 Net operating income $ 12,000 Required: 1. Prepare a new segmented income statement based on the break-even dollar sales that you computed in requirements 2 and 3. What is Crossfire’s net operating income (loss) in your new segmented income statement? 2. Do you think that Crossfire should allocate its common fixed expenses to the East and West regions when computing the break-even points for each region?