Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear$35.00 Total fixed cost per month 1,500.00 Variable cost per bear 24.00 Determine the degree of operating leverage if she sells 350 bears this month. (Round your answer to 2 decimal places.) 35.00

1.64

Explanation:

Heather Hudson degree of operating leverage

Formula for degree of operating leverage will be:

Degree of Operating Leverage = Total Contribution Margin / Net Operating Income

Total CM = (35-24) * 350

= 3,850

Formula for Net operating income

Net Operating income = Contribution Margin – Fixed Costs

= 3,850 – 1,500 =2,350

Therefore:

Operating Leverage =

3,850/2,350

= 1.64

1.64

Explanation:

Heather Hudson is a manufacturer of stuffed teddy bears, the following are the current information gotten from her business

Selling price of the bear= $35

Total fixed cost per month= 1,500

Variable cost for one near= 24

The formular used to calculate the degree of operating leverage is

= Total contribution margin/ Net operating income

First of all we have to find the Total contribution margin

= (35-24)×350

= 11×350

= 3,850

Total contribution cost = 3,850

The next step is to find the Net operating income

= Contribution margin-fixed costs

= 3,850-1,500

= 2,350

Therefore the degree of operating leverage is

= 3,850/2350

= 1.64

Hence Heather Hudson degree of operating leverage if she sells 350 bears for a month is 1.64

answer: g

explanation: g

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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