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## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

problem: Understanding effects of operating leverage High Tech, Corporation, and Old Time Company compete within the same industry & had the following operating results in 2008:

 High Tech Old Time Co. Sales........................................ \$2,100,000 \$2,100,000 Variable expenses..................... 420,000 1,260,000 Contribution Margin......... \$1,680,000 \$840,000 Fixed expenses.................. 1,470,000 630,000 Operating income.................. \$210,000 \$210,000

Required:

Determine the break-even point for each company in terms of revenue;

 High Tech Old Time Co. Sales........................................ 100% 100% Variable expenses..................... Contribution Margin......... Fixed expenses.................. Operating income..................

Cost Accounting, Accounting

• Category:- Cost Accounting
• Reference No.:- M923236

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