The degree of operating leverage can be calculated as:
A. contribution margin divided by sales.
B. gross margin divided by net operating income.
C. net operating income divided by sales.
D. contribution margin divided by net operating income.
Answer: D
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Accounting Chapter 5
- Fjeld Corporation produces and sells two products. In the most recent month, Product C66G had sales of $20,000 and variable expenses of $7,200. Product U11T had sales of $19,000 and variable expenses of $8,400. And the fixed expenses of the entire company were $21,740. If the sales mix were to shift toward Product C66G with total dollar sales remaining constant, the overall break-even point for the entire company:
- Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $32,000 and variable expenses of $10,880. Product P42T had sales of $45,000 and variable expenses of $18,380. And the fixed expenses of the entire company were $46,070. The break-even point for the entire company is closest to
- Balbuena Corporation produces and sells two products. Data concerning those products for the most recent month appear below: The fixed expenses of the entire company were $15,630. If the sales mix were to shift toward Product K87W with total sales dollars remaining constant, the overall break-even point for the entire company:
- Rickers Inc. produces and sells two products. Data concerning those products for the most recent month appear below: The fixed expenses of the entire company were $38,940. The break-even point for the entire company is closest to:
- The following monthly data are available for the W.K. Kent Company: The break-even sales for the month for the company are closest to:
- Tanigawa Inc. has an operating leverage of 8.7. If the company's sales increase by 8%, its net operating income should increase by about:
- Sperberg Corporation's operating leverage is 3.7. If the company's sales increase by 12%, its net operating income should increase by about:
- Lagasca Corporation's contribution format income statement for December appears below: The degree of operating leverage is closest to:
- The January contribution format income statement of Brotherton Corporation appears below: The degree of operating leverage is closest to:
- At a sales level of $90,000, Blue Company's contribution margin is $24,000. If the degree of operating leverage is 6 at a $90,000 sales level, net operating income must equal:
- Kendall Company has sales of 1,000 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $30,000, the degree of operating leverage is:
- Victorin Corporation has provided the following data concerning its only product: The margin of safety as a percentage of sales is closest to:
- Sturrock Corporation has provided the following data concerning its only product: What is the margin of safety in dollars?
- Puchalla Corporation sells a product for $230 per unit. The product's current sales are 13,400 units and its break-even sales are 10,720 units. The margin of safety as a percentage of sales is closest to:
- Olis Corporation sells a product for $130 per unit. The product's current sales are 28,900 units and its break-even sales are 25,721 units. What is the margin of safety in dollars?
- The following information pertains to Clove Co.: Clove's margin of safety is:
- Zumpano Inc. produces and sells a single product. The selling price of the product is $170.00 per unit and its variable cost is $73.10 per unit. The fixed expense is $125,001 per month. The break-even in monthly dollar sales is closest to:
- Data concerning Carlo Corporation's single product appear below: The break-even in monthly dollar sales is closest to:
- Shiraki Corporation produces and sells a single product. Data concerning that product appear below: The break-even in monthly dollar sales is closest to:
- Moncrief Inc. produces and sells a single product. The selling price of the product is $170.00 per unit and its variable cost is $62.90 per unit. The fixed expense is $300,951 per month. The break-even in monthly unit sales is closest to:
- Data concerning Odum Corporation's single product appear below: The break-even in monthly unit sales is closest to:
- Rave Corporation produces and sells a single product. Data concerning that product appea below: The break-even in monthly unit sales is closest to:
- The following is last month's contribution format income statement: What is the company's break-even in sales dollars?
- Rider Company sells a single product. The product has a selling price of $40 per unit and variable expenses of $15 per unit. The company's fixed expenses total $30,000 per year. The company's breakeven point in terms of total dollar sales is:
- The following data pertain to last month's operations: The break-even point in dollars is:
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