Answer:
3.60
Explanation:
Given that,
Sales units = 1,000
Sales price per unit = $60
Variable expenses = 40% of the selling price
Total Fixed cost = $26,000
Contribution margin per unit:
= Selling price - Variable cost
= $60 - ($60 × 40%)
= $60 - $24
= $36
Total contribution:
= Contribution margin per unit × Sales units
= $36 × 1,000
= $36,000
Profit = Total contribution - Fixed cost
= $36,000 - $26,000
= $10,000
Degree of operating leverage:
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed Expenses)
= (60,000 - 24,000) ÷ (60,000 - 24,000 - 26,000)
= 36,000 ÷ 10,000
= 3.60
Accrued Net Income will be calculated as below:
Sales $72800
Less Expenses $20400
Cash Income $52400
Less: Depreciation $4900
Add: Accounts Receivable Inc $4500
Less: Reduction in Prepaid Exp $1900
Add: Reduction in Acc Liab $1700
Accrued Income $51800
Depreciation will be reduced as its an expense and all expenses will be reduced.
Increase in Accounts Recievables indicate there have been sales which have not been paid for yet, thus sales will increase and this needs to be added
Reduction in Prepaid Expenses refer to expenses being paid off earlier but now need to be recognised, thus these need to be added to expenses
Reduction in accrued liabilitites indicate that expenses of previous period have been paid off now thus those need to be reduced from cash expenses.
Middle Managers are responsible for the creation of tactical
plans. Middle managers are those people who are in the senior management
position. Main roles of middle managers is to make a strategy for the company
making sure that the company focus on their goals and targets. The middle
managers should also provide quick results is solving the company’s problems.
The largest amount of money the government lays out is for the transfer program, Social Security. And its largest expenditure is for national defense. America is quite known for spending a lot of money on defending itself from any possible threat.
