At an output level of 14,500 units, you have calculated that the degree of operating leverage is
Question:
At an output level of 14,500 units, you have calculated that the degree of operating leverage is 3.41. The operating cash flow is $81,000 in this case. Ignoring the effect of taxes, what are fixed costs? What will the operating cash flow be if output rises to 15,500 units? If output falls to 13,500 units?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
Calculation The fixed costs are given by Fixed Costs Op...View the full answer
Answered By
Labindao Antoque
I graduated in 2018 with a Bachelor of Science degree in Psychology from Dalubhasaan ng Lungsod ng San Pablo. I tutored students in classes and out of classes. I use a variety of strategies to tutor students that include: lecture, discussions about the subject matter, problem solving examples using the principles of the subject matter being discussed in class , homework assignments that are directed towards reinforcing what we learn in class , and detailed practice problems help students to master a concept. I also do thorough research on Internet resources or textbooks so that I know what students need to learn in order to master what is being taught in class .
0.00
0 Reviews
10+ Question Solved
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Business 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.
-
Suppose that the probability that a mechanic fixes a car correctly is 0.9. Determine the odds against the mechanic fixing a car correctly.
-
A 1.0-L solution that is 1.6 M in ammonia is mixed with 75.8 g of ammonium sulfate. a. What is the hydroxide-ion concentration of this solution? b. 0.058 mol of MnCl2 is added to the above solution....
-
European Styles, Inc. manufactures womens blouses of one quality, which are produced in lots to fill each special order. Its customers are department stores in various cities. European Styles sews...
-
Ludvig Ahlquist, who has considerable experience in the home security industry, is planning to launch a new line of home security alarms that he believes would be superior to other products in the...
-
On July 1, 2014, Visnak Satellites issued $4,500,000, 7%, 10-year bonds at $4,194,218. This price resulted in an effective-interest rate of 8% on the bonds. Visnak uses the effective interest method...
-
1. In figure, two identical particles each of mass m are tied together with an inextensible string. This is pulled at its centre with a constant force F. If the whole system lies on a smooth...
-
What was the net increase or decrease in cash flow from having purchased the foreign currency option to hedge this exposure to foreign exchange risk? a. $0. b. A $1,000 increase in cash flow. c. A...
-
Rework Problems 1 and 2 assuming the ending share price is $61. Problem 1 Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending...
-
A proposed project has fixed costs of $76,000 per year. The operating cash flow at 9,200 units is $108,700. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise...
-
Passing the driver of a car wishes to pass a truck that is traveling at a constant speed of 20.0 m/s (about 45 mi/h). Initially, the car is also traveling at 20.0 m/s and its front bumper is 24.0 m...
-
Firearms have been in the news again as calls for increased gun control measures resurface. But the gun industry has been going through it own ups and downs just last week when firearms giant...
-
What do you think about all the earning management done at GE? Do you think users would eventually respond to the fact that GE has been a "relatively aggressive practitioner of earnings management"?
-
11. Evaluate each of the following expressions: a. 4*3/6-4+ Math.pow(7,2) b. (3+4)*7-3 c. 9*2/4+5%3+3 d. 55==55
-
An accountant works for TrailBlazer. On September 5th, he received an invoice totalling $32,500 from Whirlco with payment terms 3/10, 1.5/20, n/30. He sent in a partial payment on September 14th to...
-
Show for any choice of given angles 0, f and f, the following are unit vectors in the Euclidean norm: (a) (cos cos,cos sin,sin)T (b) 1/2 (cos,sin,cos,sin)T (c) (cos cos cos
-
Consider the setup in Problem 16. Show that the relative speed of the ball and the point of contact on the stick is the same before and immediately after the collision. (This result is analogous to...
-
You recently graduated from college, and your job search led you to S&S Air. Because you felt the company's business was headed skyward, you accepted the job offer. As you are finishing your...
-
Consider the following information: a. Your portfolio is invested 25 percent each in A and C and 50 percent in B. What is the expected return of the portfolio? b. What is the variance of this...
-
Asset W has an expected return of 11.4 percent and a beta of 1.18. If the risk-free rate is 3.15 percent, complete the following table for portfolios of Asset W and a risk-free asset. Illustrate the...
-
Based on past experience, Maas Corp. (a U.S.-based company) expects to purchase raw materials from a foreign supplier at a cost of 1,000,000 francs on March 15, 2021. To hedge this forecasted...
-
. Discuss how the biological, psychological, and sociocultural approaches explain the causes of suicidal behavior
-
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hour at a rate of $13 per hour. Variable overhead is budgeted...
Study smarter with the SolutionInn App