Compute margin of safety and operating leverage
Victor’s Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of sales, and monthly fixed expenses are $12,000.
Requirements
1. Compute the monthly margin of safety in dollars if the shop achieves its income goal.
2. Express Victor’s margin of safety as a percentage of target sales.
3. What is Victor’s operating leverage factor at the target level of operating income?
4. Assume that the company reaches its target. By what percentage will the company’s operating income fall if sales volume declines by 12%?
Answers: 1
Business, 22.06.2019 11:00
Why are the four primary service outputs of spatial convenience, lot size, waiting time, and product variety important to logistics management? provide examples of competing firms that differ in the level of each service output provided to customers?
Answers: 1
Business, 22.06.2019 15:00
Ineed this asap miguel's boss asks him to distribute information to the entire staff about a mandatory meeting. in 1–2 sentences, describe what miguel should do.
Answers: 1
Business, 22.06.2019 15:30
University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times
Answers: 2
Compute margin of safety and operating leverage
Victor’s Repair Shop has a monthly target operating...
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Biology, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
History, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01
Biology, 18.09.2020 16:01
Mathematics, 18.09.2020 16:01