If the contribution margin ratio is 0.45, targeted operating income is $95,000, and targeted sales volume in dollars is $550,000, then the degree of operating leverage is ________. A. 2.61 times B. 3.18 times C. 1.22 times D. 0.38 times
Degree of operating leverage = % change in operating income with respect to change in sales
It can also be calculated as
Contribution/operating income
Contribution = Sale* contribution margin ratio
= $550000*.45
=$247500
Degree of operating leverage = $247500/$95000=2.61 times
If the contribution margin ratio is 0.45, targeted operating income is $95,000, and targeted sales volume...
If the contribution margin ratio is 0.60, targeted operating income is $100,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverage is ________. 3.00 times 0.67 times 0.33 times 2.00 times
11. If the contribution margin ratio is 0.40, targeted operating income is $80,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverage is: A) 1.50 times B) 2.00 times C) 2.50 times D) 3.00 times
If the contribution margin ratio is 0.40, targeted operating income is $95,000, and targeted sales volume in dollars is $520,000, then the degree of operating leverage is ________. 3.28 times 0.46 times 1.50 times 2.19 times Sales of Blistre Autos are 350,000, variable cost is 210,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company. 1.50 times 2.80 times 4.67 times 1.80 times Tony Manufacturing produces a single product that sells for $80. Variable...
Question 13 1.5 If the contribution margin ratio is 0.40, targeted operating income is 595,000, and targeted sales volume in dollars is 5520,000, then the degree of operating leverage is 1.50 times 0.46 times 3.28 times 2.19 times
If the contribution margin ratio is 0.25, targeted operating income is $50,000, and targeted sales volume in dollars is $260,000, then total fixed costs are Select one: O A. $157,500 O B. $35,000 O C. $15,000 O D. $210,000
If the contribution margin ratio is 0.40, targeted operating income is $70,000, and targeted sales volume in dollars is $ $250,000, then total fixed costs are ________
If the contribution margin ratio 1 0.25 targeted operating income is $25,000, and targeted sales volume in dollars is \$200,000 , then total fixed costs are what : $75.000 525,000 $100,000 \$50,000
2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverages 1 25 times 3.50 times 1.00 times 2.00 times 1.50 times 3.00 times 1.75 times 2.50 times 2 point CLO-3] if the contribution margin ratlos 0.40, targeted operating Income is 580,000, and targeted sales volume in dollars is $500,000, then the degree of operating leverages 1 25 times 3.50 times 1.00 times...
If the contribution margin ratio is 0.60, targeted operating income is $55,000, and fixed costs are $90,000, then sales volume in dollars is ________. $150,000 $91,667 $362,500 $241,667 Blistre Company operates on a contribution margin of 40% and currently has fixed costs of $530,000. Next year, sales are projected to be $3,200,000. An advertising campaign is being evaluated that costs an additional $110,000. How much would sales have to increase to justify the additional expenditure? $1,280,000 $165,000 $275,000 $530,000 ________...
Contribution margin ratio Gross margin ratio Margin of safety percentage Degree of operating leverage 40% 60% 10% If O'Riley's sales increase by 25%, by what percentage will its net operating income increase? a. 40% b. 160%. c. 240%. d. 100%.