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Author Question: Colorado Furniture Company manufactures natural weathered reclaimed wood furniture. The company ... (Read 78 times)

gjjjjjdkkkkk3k3k33k

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Question 1

Patton Company's selling price is $100, variable costs are 60% of sales, and fixed costs total $60,000.

Required:

a.At a $400,000 sales level, what is Patton's degree of operating leverage?
b.If sales volume increases by 10%, what will be the amount of increase in operating
income?

Question 2

Colorado Furniture Company manufactures natural weathered reclaimed wood furniture. The company produces two sizes of beds. Data for the company's activity during a typical period are presented below:

QueenKing
Units sold100300
Sales price$1,800$2,000
Variable cost per unit$1,080$1,100

The company incurs $300,000 in fixed costs during the year. Assuming the sales mix is constant, what will Colorado's operating income be if sales volume increases by 10%?


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Marked as best answer by gjjjjjdkkkkk3k3k33k on Feb 5, 2023

kaelamcrone

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gjjjjjdkkkkk3k3k33k

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Reply 2 on: Feb 5, 2023
Excellent


elyse44

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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