Use the below information to answer the following question. Sales (100,000 units) $ 1,000,000 Variable costs 300,000 Contribution margin 700,000 Fixed manufacturing costs 200,000 Operating income 500,000 Interest 75,000 Earnings before taxes 425,000 Taxes (30%) 127,500 Net income $ 297,500 Refer to the table. The degree of financial leverage is _____

Use the below information to answer the following question. Sales (100,000 units) $ 1,000,000 Variable costs 300,000 Contribution margin 700,000 Fixed manufacturing costs 200,000 Operating income 500,000 Interest 75,000 Earnings before taxes 425,000 Taxes (30%) 127,500 Net income $ 297,500 Refer to the table. The degree of financial leverage is _____

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 6P

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Use the below information to answer the following question. Sales (1,000 units) $ 200,000 Variable costs 110,000 Contribution margin 90,000 Fixed manufacturing costs 40,000 Operating income 50,000 Interest 10,000 Earnings before taxes 40,000 Taxes (30%) 12,000 Net income $ 28,000 Shares Outstanding 1,000 Refer to the table. The degree of financial leverage (DFL) is _____.
Use the below information to answer the following question. Sales (1,000 units) $ 200,000 Variable costs 110,000 Contribution margin 90,000 Fixed manufacturing costs 40,000 Operating income 50,000 Interest 10,000 Earnings before taxes 40,000 Taxes (30%) 12,000 Net income $ 28,000 Shares Outstanding 1,000 Refer to the table. The degree of operating leverage (DOL) is _____.
Use the below information to answer the following question. Sales (1,000 units) Variable costs Contribution margin Multiple Choice $ 200,000 110,000 Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30%) Net income Shares Outstanding Refer to the table. The degree of combined leverage (DCL) is. 5.45x 90,000 40,000 50,000 10,000 40,000 12,000 $ 28,000 1,000
9)If a company's contribution margin ratio is 0.40, targeted operating income is $80,000, and targeted sales volume in dollars is $500,000, then the operating leverage factor is how much?
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?
U.S. Steal has the following income statement data: Units Sold Total Variable Costs Fixed Costs Total Costs Total Revenue Operating Income (Loss) 80,000 $ 160,000 $ 70,000 $ 230,000 $ 400,000 $ 170,000 100,000 200,000 70,000 270,000 500,000 230,000 The top row of the table has the beginning values and the bottom row of the table has the ending values. Compute the degree of operating leverage (DOL) based on the formula below. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. DOL = Percent change in operating income / Percent change in units sold Recompute DOL using the formula given below. There may be a slight difference due to rounding. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. DOL = Q(P − VC) / Q(P − VC) − FC Q represents beginning units sold (all calculations should be done at this level). P can be found by dividing total revenue by units sold. VC can be found by dividing total…
Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $324. Variable cost per unit $187 Units sold 449 Fixed costs $8,589 Interest expense 17,204 Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 4.2 percent? (You should calculate the degree of financial leverage first). (Write the percentage sign in the "units" box).
1. The function of a company's product to produce output at the level of input use is Q = -1/3x3 + 9x3 + 70. If the input price x used is IDR. 800, - per unit, while the output price is IDR. 10, - per unit, specify: a. The amount of input that must be used by the company in orderto produce the amount of output that provides maximum finance! How much is the output? b. What is the average size of the company?
he words a Sudi Use the following information to calculate the company's operating leverage, finan- ada bus EXERCISE 9: LEVERAGE CALCULATIONS brob cial leverage, and combined leverage: Sales volume Price per unit Variable costs (per unit) Fixed costs Interest Corporate income tax rate 100,000 units 11.30 moll 8.30 si diwory on $ $ $100,000 $ 25,000 40% EXERCISE 10: LEVERAGE CALCULATIONS Using the data in Exercise 9, assume that the company wants to make its plant more automated and is able to reduce the variable costs to $7.30 per unit, increase the fixed costs by $100,000 (i.e., to $200,000), and increase the finance costs from $25,000 to $35,000. Issigns Question 6: COST OF CAPITALA ENT Calculate the new operating leverage, financial leverage, and combined leverage.
Company H wants to calculate degree of operating, financial and combined leverage for the company using 2018 financial data. The financial data are as follows: Sales (80,000 units) S800,000 Variable costs S250,000 $550,000 $150,000 Contribution Fixed costs $400,000 $50,000 Operating income Interest Earnings before taxes $350,000 What is the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of Combined Leverage (DCL)? a. DOL is 1.143; DFL is 1.132 and DCL is 1.571. b. DOL is 1.571; DFL is 1.143 and DCL is 1.143. c. DOL is 1.143; DFL is 1.143 and DCL is 1.137. d. DOL is 1.375; DFL is 1.143 and DCL is 1.571.
At an output level of 18,000 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $46,500 in this case. Ignore the effect of taxes. a. What are fixed costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will the operating cash flow be if output rises to 19,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the operating cash flow be if output falls to 17,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Calculate the Operating Leverage for a business given the following data: Sales = $300,000.00 Variable Costs = 75% of Sales Operating Income = $40,000.00 Group of answer choices a. 0 b. 7.500 c. 1.875 d. 1.333

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9781337514835

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CENGAGE LEARNING - CONSIGNMENT

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Sales (100,000 units)	$	1,000,000
Variable costs		300,000
Contribution margin		700,000
Fixed manufacturing costs		200,000
Operating income		500,000
Interest		75,000
Earnings before taxes		425,000
Taxes (30%)		127,500
Net income	$	297,500