At an output level of 73,000 units, you calculate that the degree of operating leverage is 2.90.
Question:
At an output level of 73,000 units, you calculate that the degree of operating leverage is 2.90. If output rises to 78,000 units, what will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or lower? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
Input area Initial output level ...View the full answer
Answered By
Diane Joyce Pastorin
Please accept my enthusiastic application to solutioninn. I would love the opportunity to be a hardworking, passionate member of your tutoring program. As soon as I read the description of the program, I knew I was a well-qualified candidate for the position.
I have extensive tutoring experience in a variety of fields. I have tutored in English as well as Calculus. I have helped students learn to analyze literature, write essays, understand historical events, and graph parabolas. Your program requires that tutors be able to assist students in multiple subjects, and my experience would allow me to do just that.
You also state in your job posting that you require tutors that can work with students of all ages. As a summer camp counselor, I have experience working with preschool and kindergarten-age students. I have also tutored middle school students in reading, as well as college and high school students. Through these tutoring and counseling positions, I have learned how to best teach each age group.
4.60+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Cash Flow and Leverage At an output level of 10,000 units, you have calculated that the degree of operating leverage is 2.15. The operating cash flow is $28,000 in this case. Ignoring the effect of...
-
The degree of operating leverage for Dousmann Corp. and PCB Co. are 1.4 and 5.6, respectively. Both have net incomes of $50,000. Determine their respective contribution margin s.
-
The degree of operating leverage for Montana Corp. and APK Co. are 1.6 and 5.4, respectively. Both have net incomes of $50,000. Determine their respective contribution margin s. Discuss.
-
The following data relating to direct materials cost for August of the current year are taken from the records of Happy Tots Inc., a manufacturer of plastic toys: Quantity of direct materials used...
-
The stresses acting on element B in the web of a wide-flange beam are found to be 14,000 psi compression in the horizontal direction and 2600 psi compression in the vertical direction (see figure)....
-
Evaluate the following integrals analytically. [x x ln x dx
-
Consider the scenario in Example 3.1, and suppose that an investigator only has enough fertilizer A to use on four plots. Answer the following questions. a. What is the probability that an individual...
-
The normal capacity of a manufacturing plant is 30,000 direct labor hours or 20,000 units per month. Standard fixed costs are $6,000, and variable costs are $12,000. Data for two months follow: For...
-
(a) Prove, using the definition, that L{f(at)} = F() (a #0). (b) Prove, using the definition, that L{eat f(t)} = F(s-a). (c) Prove, using the definition, that the Laplace transform of the function...
-
Tipton One-Slop Decorating sells paint and paint supplies, carpet, and wallpaper at a single-store location in suburban Des Moines. Although the company has been very profitable over the years,...
-
Consider a project with the following data: accounting break-even quantity = 13,400 units; cash break-even quantity = 10,600 units; life = five years; fixed costs = $150,000; variable costs = $24 per...
-
A proposed project has fixed costs of $84,000 per year. The operating cash flow at 7,500 units is $93,200. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise...
-
Why do health professionals view marketing in a different way than their counterparts in other industries?
-
b. Given: When solving circuits, you will learn to develop a system of equations that governs the circuit's mesh currents. Such a system of equations might look like the following. I = 0.003...
-
2. What do you do if SolidWorks Simulation menu is not on the SolidWorks menu bar?
-
14. A dual-slope integrating ADC includes a voltage reference Vref of 2.50000 volts and a clock with 1 s 'ticks'. The voltage to be converted, Vin, is applied to the integrator for exactly 500,000...
-
15. (a) Define: (i) signal to noise ratio (SNR) (ii) random, or Gaussian electrical noise. (b) State two sources of random noise. (c) Explain what is meant by repetitive averaging. What must be known...
-
a. Given: When solving circuits, you will learn to develop a system of equations that governs the circuit's node voltages. Such a system of equations might look like the following: V V - V + 4,000...
-
Absorbance is a measure of the proportion of monochromatic (single-color) light that is absorbed as the light passes through a solution. An absorption spectrum is a graph of absorbance as a function...
-
Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His portfolio of stocks and...
-
Use again the data given for question 1. (a) Find the standard deviation of the regression lines slope sb. (b) Find an interval that you can be 95 % confident will contain b, the slope of the...
-
A co-worker claims that looking at all this marginal this and incremental that is just a bunch of nonsense, saying, Listen, if our average revenue doesnt exceed our average cost, then we will have a...
-
Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,400 per unit; variable costs = $220 per unit; fixed costs = $3.9 million; quantity = 85,000 units....
-
What happens to a future value if you increase the rate r ? What happens to a present value?
-
Write a short report on a (recent) development that affects the audit market, the audit profession and audit quality. In this report, you are asked to 1) Briefly describe the development and its link...
-
How do cutting-edge technologies such as artificial intelligence and blockchain facilitate organizational flexibility, enabling dynamic resource allocation, process optimization, and rapid...
-
How can individuals cultivate cognitive flexibility and emotional resilience amidst the complexities of modern life, navigating intricate personal and professional dynamics to thrive in rapidly...
Study smarter with the SolutionInn App