Picture 1 fx A B C 1 Chapter 11 2 Question 11 D E F G...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66496cbdd2067_99766496cbd5bf44.jpg)
Transcribed Image Text:
Picture 1 fx A B C 1 Chapter 11 2 Question 11 D E F G H J K L M N 11. Calculating Operating Leverage [LO4] At an output level of 40,000 units, you calculate that the degree of operating leverage is 3.19. If output rises to 44,000 units, what will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or loger? Explain. 3 4 Input area: 5 6 7 Initial output level 40,000 8 DOL 3.19 9 New output level 44,000 10 11 12 Output area: 13 14 15 AOCF 16 17 18 19 The new level of operating leverage is lower since FC/OCF is smaller. Picture 1 fx A B C 1 Chapter 11 2 Question 11 D E F G H J K L M N 11. Calculating Operating Leverage [LO4] At an output level of 40,000 units, you calculate that the degree of operating leverage is 3.19. If output rises to 44,000 units, what will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or loger? Explain. 3 4 Input area: 5 6 7 Initial output level 40,000 8 DOL 3.19 9 New output level 44,000 10 11 12 Output area: 13 14 15 AOCF 16 17 18 19 The new level of operating leverage is lower since FC/OCF is smaller.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Is the process for issuing a standard sufficient to ensure that all interested parties are consulted? What are the benefits and potential limitations of the process?
-
Comparing Mutually Exclusive Projects Vanda lay Industries is considering the purchase of a new machine for the production of latex. Machine a costs $2,600,000 and will last for six years. Variable...
-
When estimating significance of a given fraud risk, the team should consider a. The significance to the organization's operations, brand value, and reputation. b. Legal liability (criminal, civil,...
-
Sociologists use graphs to study connections between people and to identify characteristics that make communities more resilient, more likely to stay connected over time. In the graphs shown, the...
-
Consider the unadjusted trial balance of WOW, Inc., at July 31, 2014, and the related month-end adjustment data. Adjustment data at July 31, 2014: a. Accrued service revenue at July 31, $3,950. b....
-
In which type of companies is overhead applied to jobs? primarily service companies manufacturing and service companies only companies that have labour costs associated with products only...
-
Large Ltd. purchased 75% of Small Company on January 1, Year 6, for $750,000, when the statement of financial position for Small showed common shares of $540,000 and retained earnings of $240,000. On...
-
f(x) = 2x-5x+3 == at x = 1 x-1
-
Indicate whether each account listed below is a(n) asset (A), liability (L), owner's equity (OE), revenue ( \(R\) ), or expense ( \(\mathbf{\text { e }}\) ) account. Salaries Payable Land L. Graham,...
-
List five ways you can customize a QuickBooks Accountant report.
-
The audit firm's valuation specialist would likely be brought in to assist in the audit of fair value measurements at an entity when the following is present: a. The entity is a new audit client. b....
-
List at least three of the preset formats that QuickBooks Accountant provides for an income statement.
-
An auditor would be most likely to identify a contingent liability by obtaining a(n) a. Accounts payable confirmation. b. Bank confirmation of the client's cash balance. c. Letter from the entity's...
-
On January 1, 2020, a machine was purchased for $400,000 by Younger Leasing Co. The machine is expected to have a 10-year life with no salvage value. Similar machines are depreciated on a...
-
Explain the Hawthorne effect.
-
The September 3, 2009, issue of BusinessWeek includes an article by Lindsey Gerdes entitled The Best Places to Launch a Career. It provides interesting information regarding the job opportunities for...
-
Presented below are selected financial statement items for Rowe Corporation for December 31, 2012. Inventory $ 55,000 Cash paid to purchase equipment $ 30,000 Cash paid to suppliers 154,000 Equipment...
-
Purpose: Identify summary information about companies. This information includes basic descriptions of the companys location, activities, industry, financial health, and financial performance....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App