209.A business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year. Calculate the current year's sales.
210.Cordell, Inc. has an operating leverage of 3. Sales are expected to increase by 9% next year. What is the expectedchange in operating income next year?
211.Silver River Company sells Products S and T and has made the following estimates for the coming year:
Product
|
Unit Selling Price
|
Unit Variable Cost
|
Sales Mix
|
S
|
$30
|
$24
|
60%
|
T
|
70
|
56
|
40
|
Fixed costs are estimated at $202,400. Determine (a) the estimated sales in units of the overall product necessaryto reach the break-even point for the coming year, (b) the estimated number of units of each product necessary tobe sold to reach the break-even point for the coming year, and (c) the estimated sales in units of the overall productnecessary to realize an operating income of $119,600 for the coming year.
212.Define operating leverage. Explain the relationship between a company’s operating leverage and how a change insales is expected to impact profits.