# Question

Use the following information to calculate the companyâ€™s operating leverage, financial leverage, and combined leverage:

Sales volume .......... 100,000 units

Price per unit .......... $ 11.30

Interest ............ $ 2 5,000

Variable costs (per unit) ....... $ 8.30

Fixed costs ........... $100,000

Corporate income tax rate ..... 40%

Sales volume .......... 100,000 units

Price per unit .......... $ 11.30

Interest ............ $ 2 5,000

Variable costs (per unit) ....... $ 8.30

Fixed costs ........... $100,000

Corporate income tax rate ..... 40%

## Answer to relevant Questions

Using the data in Exercise 9, assume that the company wants to make its plant more automated and is able to reduce the variable costs to $7.30 per unit, increase the fixed costs by $100,000 (i.e., to $200,000), and increase ...What do the symbols, PMT, A, and S mean?With an 8% interest rate, calculate the (1) Net future value (2) Net present value with the following five-year cash flow projections.Years Cash Flow0 ............. $150,0001 ............. 40,0002 ...If you invest $10,000 at 8%, how much will your investment be worth at the end of the following time periods?a) 5 yearsb) 10 yearsc) 15 yearsHow is the internal rate of return calculated?Post your question

0