Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the sales and cost data for two companies in the t

The sales and cost data for two companies in the transportation industry are as follows:...

60.1K

Verified Solution

Question

Accounting

The sales and cost data for two companies in the transportation industry are as follows:

Pacific Percent Atlantic Percent Sales $ 120,000 100 % $ 120,000 100 % Variable costs 72,000 60 36,000 30 Contribution margin 48,000 40 84,000 70 Fixed costs 36,000 72,000 Operating income (B) $ 12,000 $ 12,000

a. Calculate the degree of operating leverage (DOL) for both Pacific and Atlantic from the data above.

b. Based on your analysis, which company has more risk?

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

Think of someone you know who is a model environmental citizen. How do they demonstrate...

Biology
Q

In the Yeast Fermentation lab activity you set up four treatments to investigate what yeast...

Biology
Q

In closed end pipe of length 105 cm sta What distance from the closed end...

Physics
Q

Solve the right triangle Round K 8 A 40 M L CO

Geometry
Q

Write a linear function that describes the poverty threshold in terms of years after 1980...

Basic Math
Q

Kristin Wilson lives in Anderson, South Carolina, and wishes to visit relatives in the following...

Basic Math
Q

A school counts the number of students taking AMDM and find 205 students taking AMDM....

Basic Math
Q

Express the interval [5,7) as an inequality.

Algebra
Q

2 Solve for x 15 12 x 9 33 6 x 12 5x 5x 150...

Algebra
Q

, 1 4% 10:06 PM Variable overhead rate Fked overhead rate c. Present in T-accounts...

Accounting
Q

The note is due in equal annual payments of principle and interest. Incorrect income statement,...

Accounting
Q

How can allocation method based on higher income for a firm be manipulated ? Is...

Accounting