Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following income statement was drawn from the

The following income statement was drawn from the records of Finch Company, a merchandising firm:...

90.2K

Verified Solution

Question

Accounting

The following income statement was drawn from the records of Finch Company, a merchandising firm: FINCH COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (5,500 units x $168) Cost of goods sold (5,500 units $89) Gross margin Sales commissions (5% of sales) Administrative salaries expense Required Advertising expense Depreciation expense Shipping and handling expenses (5,500 units x $5) Net income $924,000 (489,500) 434,500 (46,200) (86,000) (37,000) (40,000) (27,500) $197,800 a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Finch will earn if sales increase by 20 percent.
image
a. Reconstruct the income stotement using the contribution margin format. b. Calculate the magnifude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Finch will earn if sales increase by 20 percent

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A point charge +q is at the origin. A spherical Gaussian surface centered at the origin...

Physics
Q

consider the following equation, max r = 4x + y + 6z 2x + y + 2z...

Advance Math
Q

- Fixed assets costing $8,000 with a book value of $3,000 were sold for $6,000. - Long...

Accounting
Q

2. (10 pts) A shipment of 270 cell phones and radar detectors were destroyed in...

Basic Math
Q

use the product of the the derivative f x 2x 5 3x 5 q

Calculus
Q

21 Automobiles owned by two people are one of the most commonly eligible vehicle ownerships...

Algebra
Q

trumpet company produced 10,500 units of their product that required 3.5 standard hours per unit....

Accounting
Q

For each of the following transactions, indicate whether operating (O). Investing...

Accounting
Q

The standard quantity allowed for the units produced was 4,500 pounds, the standard price was...

Accounting
Q

\table[[\table[[Pharoah Company],[Income Statement],[For the Year Ended November 30,2025]]],[Sales revenue,,$7,697,000

Accounting
Q

1 of 5 (a) Prepare the summary journal entry for the cash sale of 250...

Accounting
Q

please show your work with this. interest tables are allowed. 3. The SohnCo...

Finance