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Answer:
Secondary Ageing
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Answer:
<u>monthly flexible budget for each $11,100 increment </u>
Sales $11,100
Less Sales Commissions ( $11,100 × 6%) ($666)
Net Sales $10,434
advertising ( $11,100 × 5%) ($555)
traveling ( $11,100 × 4%) ($444)
delivery ( $11,100 × 2%) ($222)
Net Income $9,213
Explanation:
Consider Only the incremental costs and revenues.Fixed costs are not relevant for the $11,100 increment
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Answer:
"The budgeted cost of goods sold" for June would be $5,640,000
Explanation:
Sales department budget for June = 220,000 units
Less-Opening balance as on 1st June = 72,000 units
Add-Closing balance as on 30th June = 40,000 units
No of unit manufactured = Sales department budget for June - Opening balance as on 1st June + Closing balance as on 30th June
= 220,000 - 72,000 + 40,000
= 188,000 units
Cost per unit = $30
Budgeted cost of manufactured = 188,000 × $30 = $5,640,000
company B has the greater operating leverage
What is operating leverage?
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.
Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.
Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.
Learn more about operating leverage with the help of given link:-
brainly.com/question/6238482
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