Answers
Answer:
C. Entertainment
Explanation:
When goods are produced or manufactured, they are usually sealed or placed in containers/boxes, depending on the nature or how big those goods are. Ideally, packaging serves a means of protecting goods from damage. However, packaging also help to facilitate product storage and convenience.
Furthermore, packaging a product could also serve as a means of promoting it by branding the cover either through the producer's logo or any item that will be identified with the producer. There is also the aspect of packaging that facilitate recycling and also help to reduce damage to the environment.
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Related Questions
The two main sources for the supply of capital in the u.s. economy are:__________
Answers
Answer and Explanation:
The two significant sources for the capital supply in the u.s economy are as follows
1. Savings done by the individual and the firms that known as S
2. Financial capital inflow arise from the investors in foreign countries i.e. equivalent to the trade deficit M-X
Or Imports minus exports
These two are to be considered
Levin Furniture buys a living room set with a $4,000 list price and a 55% trade discount. Freight (FOB shipping point) of $50 is not part of the list price. What is the delivered price (including freight) of the living room set, assuming a cash discount of 2/10, n/30, ROG? The invoice had an April 8 date. Levin received the goods on April 19 and paid the invoice on April 25.
Answers
Answer:Delivered price=$1,814
Explanation:
List Price = $4,000
Trade discount = 55%
Price after discount = $4,000 - 55% x $4000
$4000- $2,200 = $1,800
if Levin pays within 10 days he will have a discount of 2 %, which he did
Therefore 2% x $1800 = $36
Delivered price = $1800 -$36+ freight charges ( shipping)
$1800 -$36 + $50=$1814
Other Information Check no. 1462 was outstanding from February. A credit memo for collection of accounts receivable was included in the bank statement. All checks were paid at the correct amount. The bank statement included a debit memo for service charges. The February 28 bank reconciliation showed a deposit in transit of $1,150. Check no. 1468 was for the purchase of equipment. The unadjusted Cash account balance at March 31 was $13,060. Required: Prepare the bank reconciliation for Pyle Garage at the end of March. Explain how the adjustments described above affect the cash account.
Answers
Answer:
Reconciliation of bank account:
Bank account balance $14,125
+ deposits in transit $3,593
- outstanding checks ($1,546) and ($793)
reconciled bank account $15,379
Reconciliation of cash account:
Cash account balance $13,060
+ Note collected by bank $3,098
- Bank fees ($69)
- Error in processing check # 1468 ($710)
reconciled cash account $15,379
Since all checks were paid at the correct amount, that means that the company's accountant made a mistake when he/she registered check #1468 and that mistake must be corrected in the cash account reconciliation.
Credit memos collected by the bank increase the company's cash account.
Debit memos (bank fees) decrease the company's cash account.
The previous month's reconciliation doesn't affect this month's reconciliation.
Explanation:
the information is incomplete, so I looked for it:
BANK STATEMENT HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321 - Account number 62-00062 - March 31, 2018
Beginning balance 3/1/2018 $9,083
Total deposits and other credits 30,155
Total checks and other debits 25,110
Ending balance 3/31/2018 14,125
Checks and Debits
Check No. Amount
1462 $3,805
1463 1,693
1464 8,050
1465 2,951
1466 1,455
1467 6,230
DM 69
1468 860
Deposits and Credits
Date Amount
March 1 $1,150
March 2 6,554
March 6 4,987
March 12 6,219
March 17 6,013
March 22 2,134
CM 3,098
The following is a list of checks and deposits recorded on the books of Pyle Garage for March 2018:
Date Check No. Amount of Check Date Amount of Deposit
March 1 1463 $1,693 March 1 $6,554
March 5 1464 8,050 March 5 4,987
March 6 1465 2,951
March 9 1466 1,455 March 10 6,219
March 10 1467 6,230
March 14 1468 150 March 16 6,013
March 19 1469 1,546 March 19 2,134
March 28 1470 793 March 29 3,593
Antonio owns a small computer repair firm. Suppose the economy has been in a recession for the past five months. When preparing the company's quarterly earnings report, Antonio realizes profits are down by over 50 percent compared to last quarter. As a result, he is forced to downsize his labor force. This is an example of a(n) _____ change.
Answers
Answer:
labor force
Explanation:
Remember, the labor force refers to a ratio of the number of employed and unemployed persons in a given economy or organization. In Antonio's case, his small computer firm had been affected by the economic recession; causing a decline in his labor force.
Wiggins Company has 2,000 shares of $100 par preferred stock, which were issued at par. It also has 35,000 shares of common stock outstanding, and its total stockholders' equity equals $795,000. The book value per common share is:________
a) $16.08.
b) $2271.
c) $21.49.
d) $100.00.
e) $17.00.
Answers
Answer:
e) $17.00 shares
Explanation:
Calculation for the book value per common share
First step is to calculate for the Preferred stock claim
Using this formula
Preferred stock claim= Company shares × Par preferred stock
Let plug in the formula
Preferred stock claim= 2,000 shares x $100 par share
Preferred stock claim= $200,000
Second step is to calculate for the Book value per common share using this formula
Book value per common share=(Total stockholders' equity-Preferred stock claim)/Common stock outstanding shares
Let plug in the formula
Book value per common share=($795,000 - $200,000)/35,000 shares = $16 share
Book value per common share=$595,000/35,000 shares
Book value per common share= $17.00 shares
Therefore the book value per common share will be $17 shares
What costs does Shun Electronics consider to be direct costs?
Answers
Answer:
Shun Electronics direct costs - their set up establishment cost, associated technicians cost - are direct costs.
Explanation:
Direct Costs are the costs associated with production/manufacturing, not selling & distribution.
Generally, factory costs - factory power, factory wages etc are considered to be direct costs.
In case of Shun Electronics, their set up establishment cost, associated technicians cost - are direct costs.
1.Identify three jobs and three careers. What do they have in common? How do they differ?
2.Discuss the cost and benefits of choosing a career instead of a job.
3.Explain different ways for people to build their human capital.
Answers
careers: doctor, dentist, engineer
similarities: make money, pay taxes, requires high school education
differences: u can make a lot more money with a careers, u got to college for a career, usually requires at minimum a associate degree
u can increase human capital by going to school, (higher education) reading, going out into the world and experiencing things, getting a job aswell ! hope this helped u ! :D good luck !
The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include a
Answers
Answer and Explanation:
Given that
The Sale is made for $900
Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days
Now the journal entry to record the receipts of a payment within discount period is
Cash Dr $882
Sales discount $18
To Account receivable $900
(Being the cash received)
Medicare and Social Security are paid through which type of federal tax?
A sales tax
B. excise tax
C. payroll tax
D. corporate income tax
Answers
Answer: C. payroll tax
Explanation: got it correct on ed2020
Which is not an example of an intangible products? 1) Music downloads 2) t-shirt 3) online video game 4) software
Answers
Answer:
The second option, a t-shirt.
Explanation:
Tangible means something that is "perceptible by touch."
If you can touch something and feel it, it's tangible.
Answer:
[tex]\boxed {\tt 2. \ T-shirt}[/tex]
Explanation:
This question asks us which is not an example of an intangible product. We need to find the object that is tangible. Let's define the words and examine our answer choices.
A tangible product is a physical object that can be touched, while an intangible product is a product that cannot be touched.
Music downloads, online video games, and software are all intangible. They cannot be touched, as they are all virtual.
A t-shirt is a tangible product that can be touched.
Therefore, the correct answer is 2. T-shirt
At the beginning of the year, Gilles Company had total assets of $800,000 and total liabilities of $300,000. Answer the following questions. (a) If total assets increased $150,000 during the year and total liabilities decreased $60,000, what is the amount of owner's equity at the end of the year? (b) During the year, total liabilities increased $100,000 and owner's equity decreased $70,000. What is the amount of total assets at the end of the year? (c) If total assets decreased $80,000 and owner's equity increased $120,000 during the year, what is the amount of total liabilities at the end of the year? g
Answers
Answer and Explanation:
Accounting equation is
Total assets = Total liabilities + Shareholder equity
The equity would be
= $800,000 - $300,000
= $500,000
a. The equity would be
Total assets = $800,000 + $150,000 = $950,000
Total liabilities = $300,000 -$60,000 = $240,000
So, the equity is
= $950,000 - $240,000
= $710,000
b. Total assets
Total liabilities = $300,000 + $100,000 = $400,000
Owner equity = $500,000 - $70,000 = $430,000
So, the total assets is
= $400,000 + $430,000
= $830,000
c. Total liabilities equal to
Total assets = $800,000 - $80,000 = $720,000
Total equity = $500,000 + $120,000 = $620,000
So, the total liabilities
= $720,000 - $620,000
= $100,000
Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $102,000. b. Direct materials used in production, $42,500. Indirect materials used in production, $15,000. c. Paid cash for factory payroll, $55,000. Of this total, $37,000 is for direct labor and $18,000 is for indirect labor. d. Paid cash for other actual overhead costs, $8,375. e. Applied overhead at the rate of 125% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $72,600. g1. Jobs that had a cost of $72,600 were sold. g2. Sold jobs on account for $104,000.
Answers
Answer and Explanation:
The journal entries are given below:
a. Raw materials inventory A/c Dr $102,000
To Accounts payable A/c $102,000
(To record raw material purchased on credit)
b. Work in progress inventory A/c Dr $42,500
To Raw materials inventory A/c $42,500
(To record used in production)
Factory overhead A/c Dr $15,000
To Raw materials inventory A/c $15,000
(To record indirect material used
c. Work in progress inventory A/c Dr $37,000
Factory overhead A/c Dr $18,000
To cash A/c $55,000
(To record factory payroll is paid in cash)
d. Factory overhead A/c Dr $8,375
To Cash A/c $8,375
(To record other actual overhead is paid for cash)
e. Work in progress inventory A/c Dr $46,250 ($37,000 × 125%)
To Factory overhead A/c $46,250
(To record applied overhead)
f. Finished goods inventory A/c Dr $72,600
To Work in progress inventory A/c $72,600
(To record transferred goods)
g1. Cost of goods sold A/c Dr $72,600
To Finished goods inventory A/c $72,600
(To record the job cost)
g2. Accounts receivable A/c Dr $104,000
To Sales A/c $104,000
(To record jobs are sold on account)
Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $4.00. The smallest amount for which you would be willing to wash someone else's car is $2.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it
Answers
Answer:
Economic surplus is $1.5
Explanation:
Economic surplus considers two components. The consumer surplus and the producer surplus.
Consumer surplus is difference between what a consumer is willing to pay and the market price of a good.
Producer surplus is the difference between the market price of a good and the minimum amount seller is willing to recieve for the product.
In this instance economic surplus combines the benefits that a producer and supplier gets from the product.
Consumer surplus is $4 and the producer surplus is $2.50
So if one decides to wash the car the comic surplus will be 4 - 2.50 = $1.5
Answer: $1.50
Explanation:
The economic surplus is the benefit that a person receives over what they view as the cost of the transaction.
Here you believe the car wash is worth $4.00 yet you believe the cost would be $2.50 if you did it yourself.
The surplus you are gaining therefore is;
= 4 - 2.50
= $1.50
Why does insurance often provide "peace of mind"? O People know their insurance coverage will help prevent accidents and damage O People trust that they will make a profit if they pay insurance premiums. O People are not concerned about their health if they can pay for doctor's visits. 0 People are less worried when they know they have protection from risk.
Answers
Answer: D.) People are less worried when they know they have protection from risk.
Explanation:
The reason why insurance provided peace of mind is because people are less worried when they know they have protection from risk.
What is insurance?Insurance is when a third-party (the insurer) promises to idenmify another party (the insured) for losses they might suffer in the future in exchange for agreed upon payments.
For example, a person might insure his car against theif. Thi makes the inusred less worried about her car getting stolen.
To learn more about insurance, please check: https://brainly.com/question/1400638
A study examining the performance of numerous assets from the United States and around the world confirms that a. U.S. equities are highly correlated with world government bonds and with the commodities index. b. most assets (including common stocks) have positive correlations with inflation. c. riskier assets with lower standard deviations experienced higher returns. d. beta did a better job of explaining the returns than standard deviation. e. riskier assets with higher standard deviations experienced lower returns.
Answers
Answer:
d. beta did a better job of explaining the returns than standard deviation
Explanation:
Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more logical.
Standard deviation computes the total risk associated.
Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:
That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.
Thus, beta provides better details about explaining the returns.
What do you think of the decision made by Adelaide Ladywell?
Answers
Answer:
Incomplete question. Here's likely the complete question;
In this, the first case, Lee High, the newly hired cost accountant, computes the variable cost and the fixed cost per unit at a volume of 500 units of Great Heath per week. He uses this information to develop some guidelines for pricing. His boss, Charlton Blackheath, endorses the guidelines and adds a feature: a higher commission on sales at a higher price.
When both High and Blackheath are away, the file clerk, Adelaide Ladywell, accepts an order below the guidelines and is fired...Evaluate the decision made by Adelaide.
Explanation:
Although Adelaide Ladywell acted presumptuously (without permission), her decision was still profitable. By looking at the costs per unit presented, the product's selling price wasn't lower than the fixed costs, therefore her actions were not a totally bad one.
Which of the following is an example of a criminal offense?
A. Check forging
B. Hitting a parked car
C. Evicting a tenant without due process
D. Being late on credit payment
Helpppppp
Answers
Answer:
B
Explanation:
it said to answer it has to have at least 20 letters so im just typing stuff now
Answer:
Evicting a tenant without due process
Explanation:
Beans Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics: Number of units in the job 10 Total direct labor-hours 50 Direct materials $ 920 Direct labor cost $ 1,400 The total job cost for Job K818 is closest to:
Answers
Answer:
Total cost= $2,595
Explanation:
Giving the following information:
Estimated fixed manufacturing overhead cost= $162,000
Variable manufacturing overhead of $2.80 per direct labor-hour
Estimated direct labor hours= 60,000
Job K818:
Number of units in the job 10
Total direct labor-hours 50
Direct materials $920
Direct labor cost $1,400
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (162,000/60,000) + 2.8
Predetermined manufacturing overhead rate= $5.5
Now, we can calculate the total cost for Job K818:
Total cost= direct material + direct labor + allocated overhead
Total cost= 920 + 1,400 + 5.5*50
Total cost= $2,595
1. How do customers judge the quality of a supermarket? 2. Indicate how and why each of these factors is important to the successful operation of a supermarket: a. Customer satisfaction b. Forecasting c. Capacity planning d. Location e. Inventory management f. Layout of the store g. Scheduling 3. What are some of the ways Wegmans uses technology to gain an edge over its competition?
Answers
Answer:
1. How do customers judge the quality of a supermarket?
They judge the quality of a supermarket depending on their values and most urgent needs.
Customers who value quality, and even luxury, will say that a good supermarket is one that offers high quality products.
Customers who value price, will prefer a low-cost supermarket.
2. Indicate how and why each of these factors is important to the successful operation of a supermarket:
a. Customer satisfaction - a very important factor because it determines how well the supermarket is serving its customers.
b. Forecasting - the supermarket needs to forecast all sorts of things, from, sales forecasts, to profit forescasts, to costs forecasts.
c. Capacity planning - the supermarket needs to know what it is actually able to do, and what projects it can embark on, for this, it needs to do a lot of capacity planning.
d. Location - Location is extremely important for a supermarket. It determines a large part of the customer demand because customers prefer supermarkets to be close to where they live.
e. Inventory management - Supermarkets need to manage inventories carefully, specially because a lot of the goods that a supermarket sells, are perishables.
f. Layout of the store - The Supermakert needs to be careful when determining the layout of the store. Customers want a layout that is easy to navigate, and where goods are placed according to a coherent classification.
g. Scheduling - The supermarket needs to establish a convenient schedule for its customer base.
What are some of the ways Wegmans uses technology to gain an edge over its competition?
Wegmans is characterized for its early adoption of ground-breaking technologies. For example, recently Wegmans developed a mobile application to assist blind shoppers.
Data concerning Pellegren Corporation's single product appear below: Fixed expenses are $531,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $14 and increase the advertising budget by $35,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? Select one: a. decrease of $18,000 b. increase of $38,000 c. decrease of $38,000 d. increase of $58,000
Answers
Answer:
a. decrease of $18,000
Explanation:
The calculation of overall effect on the company's monthly net operating income is shown below:-
Particulars Current Proposed
Sales $800,000 $837,000
($200 × 4,000) (200 - 14) × (4,000 + 500)
Variable
expenses $160,000 $180,000
(40 × 4,000) (40 × (4,000 + 500))
Contribution
margin $640,000 $657,000
Fixed
expenses $531,000 $566,000
($531,000 + 350,00)
Net operating
income $109,000 $91,000
Decrease in net operating income is
= $109,000 - $91000
= $18,000
A deposit of $1000 at 4% interest compounded continuously will grow to v(t) = 1000 e^0.04 dollars after t year. Find the average value during the first 40 years (that is, from time 0 to time 40.)
Answers
Answer: 20,816.215
Explanation:
Given that:
A deposit of $1000 at 4% interest compounding is defined by the growth function:
v(t) = 1000e^0.04t
Where t = number of years.
Find the average value during the first 40 years (that is, from time 0 to time 40.)
(That is t = 0,...,40)
For ease, we can use a python list comprehension to get our values.
v = [1000*2.7182818**0.04*t for t in range(41)]
V gives a list of the value of the deposit from year 0 till 40 years after the deposit.
Average = sum of compounding deposits / number of years
Sum of compounding deposits = sum(v) = $853464.8344
Number of years = len(v) = 41
Hence, average = $853464.8344 / 41
Average = $20,816.215
Laura and Bryce both want to be able to forward receipts to QuickBooks Online to take advantage of the Receipt Capture feature. Where would they go to enable an additional email account for the same QuickBooks Online company? Gear > Tools > Manage Receipt Capture emails Banking > Receipts > Manage Senders Banking > Receipts > Manage Receipt Capture emails Gear > Account and Settings > Advanced > Manage Senders
Answers
Answer:
Banking > Receipts > Manage Senders> Image capture
Explanation:
For taking advantage with respect to the capital feature of receipts the following procedure is applied and for enabling an extra email account the same is considered
In the column of manage, senders enter the new mail
Also, one company mail is restricted in QuickBooks online
Now if the extra email is needed to use the field of customer-facing in the column of sales form
This should be followed
Use your understanding of ethics to complete the sentence.
When managers use environmental and social impacts as criteria in all their decision making,
their philosophy
is an important part of
____
Answers
Answer: d. sustainability
Explanation:
Sustainability refers to the maintenance of resources such that they can be used in perpetuity.
When managers use environmental and social impacts as criteria in all their decision making, this is an important part of sustainability because they will be able to see how their actions affect the environment and thus adjust these actions in order to achieve sustainability of the resources we have on Earth.
Who should a visionary creator work with?
Answers
Answer:
In simple words, Visionaries refers to the individuals who put many diverse ways of thought together. People have the potential to allow their minds to freely move, unburdened by controlled pathways of thinking. But a visionary also has the potential to pull it around and effortlessly incorporate it into the actual world.
Thus, a visionary should work with someone who too have a creative mind with practical knowledge of the processes. As someone should be their to make such visionaries realize about possible and impossible.
Consider two perfectly negatively correlated risky securities, K and L. K has an expected rate of return of 12% and a standard deviation of 17%. L has an expected rate of return of 9% and a standard deviation of 11%. The risk-free portfolio that can be formed with the two securities will earn _____ rate of return.
Answers
Answer:
We need the compute the weight of K and L
Weight of K = Standard deviation of security L / Standard deviation of security K + Standard deviation of security L
Weight of K = 11% / 17% + 11%
Weight of K = 11% / 28%
Weight of K = 0.39286
Hence, the weight of security K is 0.39286
Weight of L = Standard deviation of security K / Standard deviation of security L + Standard deviation of security K
Weight of L = 17% / 11% + 17%
Weight of L = 17% / 28%
Weight of L = 0.607143
Hence, the weight of security L is 0.607143
Now we compute the rate of return risk-free portfolio as follow:
Return of portfolio = [Return of K * Weight of K] + [Return of L * Weight of L]
Return of portfolio = [12% * 0.39286] + [9% * 0.607143]
Return of portfolio = 0.0471432 + 0.05464287
Return of portfolio = 0.10178607
Return of portfolio = 10.18%
Hence, the rate of return of risk-free portfolio is 10.18%
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. Work in Process Inventory Date ExplanationDebit Credit Balance Dec.31 Direct materials cost1,900,000 1,900,000 31 Direct labor cost210,000 2,110,000 31 Overhead applied684,000 2,794,000 31 To finished goods 2,723,000 71,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at December 31. Its direct materials cost is $22,000. How much direct labor cost and overhead cost are assigned to this job
Answers
Answer:
1. Overhead rate = Overhead costs / Direct material costs
Overhead rate = $684,000 / $1,900,000
Overhead rate = 0.36
Overhead rate = 36%
2. How much direct labor cost and overhead cost are assigned to this job?
Total cost of job in process $71,000
Less: Overhead applied $7,920
($22,000 * 36%)
Less: Material cost of job in process $22,000
Direct labor cost $41,080
Hence, direct labor cost is $41,080 and Overhead cost is $7,920
In a market economy, decisions about which goods are produced are based on: A. what the local community has made for generations. B. what the government decides is important for society. C. what health care organizations suggest will be best for citizens. D. what businesses believe will generate the most profits.
Answers
Answer:
D.
Explanation:
Business run the economy not the government
D. What businesses believe will generate the most profits.
What is market economy?In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.
learn more about market economy in https://brainly.in/question/26667106
The founders of "Black Lives Matter" would be consider
according to your textbook.
1)Social activists
2)justice Warriors
3)Social warriors
4)Social entreprenures
Answers
Answer:
4)Social entreprenurers
Which of the following statements is true about the audit opinion formulation process presented in this chapter?
a. The audit opinion formulation process is significantly different for the financial statement only audit and the integrated audit.
b. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
c. The audit opinion formulation process is comprised of seven phases.
d. All of the above are true statements regarding the audit opinion formulation process.
Answers
Answer:
b. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
Explanation:
The audit opinion formulation generally, is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
This entails that if there has not been sufficient internal controls to to enable fair presentation of Financial Statements, the entity gets a qualified audit opinion (negative report) otherwise if in place, the company gets a unqualified audit opinion (positive report).
What is Neeley Grocery's operating leverage factor at the target level of operating income?
A. 1.60.
B. 0.63.
C. 2.67.
D. 0.40.
Answers
Answer:
A. 1.60
Explanation:
For computation of operating leverage factor first we need to determine the required contribution which is shown below:-
Required Contribution = Target Profit + Fixed Cost
= $25,000 + $15,000
= $40,000
Operating Leverage Factor = Contribution ÷ Operating Income
= $40,000 ÷ $25,000
= $1.60
Therefore for computing the operating leverage factor we simply applied the above formula.