A company sold a total of 1,000 units for total sales revenue of $90,000. ...

70.2K

Verified Solution

Question

Accounting

A company sold a total of 1,000 units for total sales revenue of $90,000.
The company incurred total variable expenses of $49,500 and total fixed expenses of $ 33,210.
Based on this, the company reported a total contribution margin of $40,500 and net operating income of $ 7,290.
Use this information to answer the following questions. Assume that all units are within the relevant range.
image
image
image
Calculate the net operating income if the variable cost per unit increases by S1, spending on fixed costs increases by $1,800, and unit sales increase by 260 units. Not oporum Calculate the degree of operating leverage. (Round your answer to 2 decimal places.) Degree operating loverage Calculate the estimated percent increase in net operating income for a 5% increase in sales. (Hint: Use the degree of operating leverage you already computed. (Round your intermediate calculations and final answer to 2 decimal places.) ingenting income %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students