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One way to compute the total contribution margin is to add total fixed expenses to net operating income true or false?
Wiki User
∙ 13y ago
True
Wiki User
∙ 13y ago
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Compute balance in cash at the beginning of year?
Net sales$10,810 Total assets4,502 End of year balance in cash1,097 Total stockholders' equity363 Gross profit (Sales - Cost of Sales).2,510 Net increase in cash for the year17 Operating expenses2,057 Net operating cash flow739 Other income (expense), net(15)
The degree of operating leverage is computed as?
DOL is a ratio that is used to identify the changes in the operating leverage that a company requires with growth in sales and income. As and when a company grows and its sales increases, the operating costs also increase and the operating leverage required by the promoters also changes. This ratio helps us identify that value.Formula:DOL = Percentage Change in Net Operating Income / Percentage Change in Sales
How you can manage a record of personal finances?
Construct an Income Statement.
Some technologies like pesticides have a number of negative effects. Which is a negative result of this technology?
rural farmers may lose their income
What is effect on industry?
In the environment, it obviously contribute to the pollution. For people, it provides employment. For the economy, it increases the income of the country.
Cost to income ratio?
operating expenses/operating income
How to prepare a income statement?
Sales - cost of goods sold = gross profit. - operating expenses(i.e marketing expenses and administrative expenses) = operating income. + other income - other expenses = income before tax - tax = net income/profit.
What does the contribution income statement hightlights?
Contribution income statement highlights the variable expenses as well fixed expenses incurred by company for selling goods or services.
Formula for operating income?
Operating income is equal to total revenues minus cost of goods sold, labor, and general expenses. Operating income is called Earnings Before Interest and Taxes. What is not included in expenses to be calculated in operating income is one time expenses, legal settlements, or adjustments.
How can one improve own contribution margin in the UK?
The factors that impact on the contribution margin are expenses and income or revenue. One can improve their own contribution margin by decreasing expenses or increasing their income.
How do you calculate net operating income?
Total operating income less total operating expense = net operating income (or loss if the expenses were higher)
How does the contribution margin income statement differ from the income statement used in financial reporting?
Income statement in financial reporting is different in this sense that in that income statement all expenses and incomes are shown as incomes and expenses and there is no classification of fixed expenses or variable expense while in contribution margin income statement expenses are shown in this way that separate the fixed expenses from variable portion of expenses.
How to compute cost to income ratio?
A cost or expense ratio is not that hard to calculate. Basically its the operating expenses divided by the average value of assets under management. Many sites have calculators that make this easy.
Net income plus operating expenses is equal to?
Net income plus operating expenses equals gross profit, or total revenue. To calculate net income, accountants subtract total expenses from total revenues.
If your net income is 47000 what is your gross income?
Jones bought an income property for which $47,000.00 was deducted from gross income for operating expenses. If the operating expenses are 30% of gross income, the value of the property using a cap rate of 12.5%?
Is income tax part of operating expenses?
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Name for an expanded contribution margin income statement?
A contribution margin income statement is an income statement in which all variable expenses are deducted from sales to arrive at a contribution margin. It is the expanded version.
