OceanGate sells external hard drives for $275 each. Its total fixed costs are $43 million, and...

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OceanGate sells external hard drives for $275 each. Its total fixed costs are $43 million, and its variable costs per unit are $165. The corporate tax rate is 42%. If the economy is strong, the firm will sell 8 million drives, but if there is a recession, it will sell only half as many. a. What will be the percentage decline in sales if the economy enters a recession? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Percentage decline in sales 50.00 b. What will be the percentage decline in profits if the economy enters a recession? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Percentage decline in profits % > Answer is complete but not entirely correct. 52.56 % c. Calculate the operating leverage of this firm? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 1.10 X DOL OceanGate sells external hard drives for $275 each. Its total fixed costs are $43 million, and its variable costs per unit are $165. The corporate tax rate is 42%. If the economy is strong, the firm will sell 8 million drives, but if there is a recession, it will sell only half as many. a. What will be the percentage decline in sales if the economy enters a recession? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Percentage decline in sales 50.00 b. What will be the percentage decline in profits if the economy enters a recession? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Percentage decline in profits % > Answer is complete but not entirely correct. 52.56 % c. Calculate the operating leverage of this firm? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. 1.10 X DOL

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Lets calculate the correct answers a Percentage decline in sales In the case of a recession the firm will sell only half as many drives So the decline ... View the full answer