Degree of Operating Leverage
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year.
Unit variable cost is $50 (includes direct materials, direct labor, variable factory overhead, and variable selling expense).
Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense).
Operating income at 5,000 units sold is $75,500.
Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Mason and Chenoa orally agree to a contract in which Mason will replace the fixtures in Chenoa's bathroom. In exchange, Chenoa agrees to cut Mason's hair every six weeks for the next two years.
Answers (1)
Which of the following statements about credit sales are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty
Answers (1)
How is revising different from editing?
Answers (1)
Last year's return on equity was 30%. This year the ROE has decreased to 20% even though the firm's earnings equaled last year's earnings. The firm has no preferred stock. What caused the decrease?
Answers (1)
You purchased a share of stock for $20. one year later, you received $1 as a dividend and sold the share for $29. what was your holding-period return?
Answers (1)
New Questions in Business
Johnson Corp. has an 8% required rate of return. It's considering a project that would provide annual cost savings of $50,000 for 5 years.
Answers (1)
What does the statement "This note is legal tender for all debts, public and private" guarantee? a) US currency is backed by gold. b) US currency is backed by silver. c) US currency is a way of obtaining legal credit.
Answers (1)
A successful firm like microsoft has consistently generated large profits for years. is this a violation of the emh?
Answers (1)
Which statement about writing skills in today's workplace is most accurate? a. Because of today's emphasis on teams, more business is conducted face-to-face, which reduces the need for written messages. b.
Answers (1)
At December 31, 2018, the financial statements of Hollingsworth Industries included the following: Net income for 2018 $ 590 million Bonds payable, 10%, convertible into 47 million shares of common stock $ 250 million Common stock: Shares
Answers (1)