A company that produces a single product had a net operating income of $85,000 using variable costing and a net operating income of $115,000 using absorption costing. Total fixed manufacturing overhead was $56,100 and production was 11,000 units. This year was the first year of operations. Between the beginning and the end of the year, the inventory level:

When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting

As sales exceed the break‑even point, a high contribution‑margin percentage (a) increases profits faster than does a low contribution-margin percentage (b) increases profits at the same rate as a low contribution-margin percentage (c) decreases profits at the same rate as a low contribution-margin percentage (d) increases profits slower than does a low contribution-margin percentage

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?