What is the estimated percent increase
How many units must be sold to achieve a target profit of $5,000?Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?
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For 2010, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm's 2010 expected annual capacity is 78,000 direct labor hours, to be incurred evenly each month. Making one unit of the company's product
On July 25, 2010, Karen, who is single, gives stock with a FMV of $7,500 and a basis of $8,000 to Bill. Karen had purchased the stock on March 18, 2010. Bill sold the stock on April 18, 2011 for $6,000.
Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000.
Sutherland manufactures and sells 110,000 laser printers each month. A principal component part in each printer is its paper feed drive. Sutherland's plant currently has the monthly capacity to produce 150,000 drives.
If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net operating income?
In 2014, Logan sold 1,000 units at $500 each, and earned net income of $50,000. Variable expenses were $300 per unit, and fixed expenses were $150,000.
Grosvenor Industries has designated $1.2 million for capital investment expenditures during the upcoming year. Its cost of capital is 14 percent. Any unused funds will earn the cost of capital rate.
Jason used two assets during 2013. The first was computer equipment with an original basis of $18,000, currently in the second year of depreciation, and under the half-year convention.
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