Degree of Operating Leverage
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year.
Unit variable cost is $50 (includes direct materials, direct labor, variable factory overhead, and variable selling expense).
Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense).
Operating income at 5,000 units sold is $75,500.
Calculate the degree of operating leverage. (Round your answer to the nearest tenth.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Degree of Operating Leverage Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
When using analytics programmes on your website, which of these do not fall under the category of a metric? A Browser users use to access your site B Unique visitors to your site C Time users spend on your site D Number of pages viewed per visit
Answers (1)
How did the market economy and westward expansion intensify the institution of slavery?
Answers (1)
Suppose a piece of plant equipment that PepsiCo put into service on January 1, 2014 at a total cost of $300,000 with an expected useful life of 5 years and a salvage value of $60,000 is sold on June 30, 2018 for $60,000.
Answers (1)
Which of the following economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its competitors?
Answers (1)
Members should use the AICPA conceptual framework for independence to: a) come to different conclusions than the interpretations of the code of professional conduct. b) Evaluate independence matters not addressed in the code of professional conduct.
Answers (1)
New Questions in Business
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. what is the best action for the firm to take in the short run?
Answers (1)
Fixed expenses: a. includes labor, raw materials, and commissions. b. can be estimated by taking into consideration the production. c. are incurred regardless of sales volume. d. must be linked to strategy in the business plan
Answers (1)
4) Which of the following is least likely to be your primary health care provider? a. an allergist b. an internist c. an obstetrician-gynecologist
Answers (1)
T/F A macroeconomist would be concerned with the following statement. "Two major hurricanes caused significant damage to the eastern seaboard and led to a fall in GDP and a rise in unemployment in the U. S. economy."
Answers (1)
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $14,000. By the end ofthe year, actual bad debts total $15,000. Record the write-off to uncollectible accounts.
Answers (1)