Friendly Companys financial statement for the last month is below. sales 150,000 less: variable costs...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Friendly Companys financial statement for the last month is below.
sales 150,000
less: variable costs 30,000
contribution margin 120,000
less; fixed costs 90,000
operating income 30,000 Required:
- Calculate the companys Degree of Operating Leverage.
- Using the Degree of Operating Leverage that you have calculated for part 1, calculate an estimate of a new Net Operating Income, if sales increase by 25%.
- Given the solutions above, comment on this company if its industry has an average DOL of 6.0.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.