At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.26. The operating cash flow is $78,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for 18,500 units and 16,500 units? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) DOL at 18,500 units DOL at 16,500 units

Answers

Answer 1

Answer:

DOL at 18,500 = 2.91 DOL at 16,500 = 3.78

Explanation:

First find out the Contribution margin per unit and the fixed costs to enable you calculate the profit for the 18,500 units and the 16,500 units.

DOL = Contribution Margin/ Profit

3.26 = Contribution Margin/ 78,000

Contribution Margin = 3.26 * 78,000

= $254,280

Per unit = 254,280/17,500 = $14.53

Fixed Costs = Contribution - Profit

= 254,280 - 78,000

= $176,280

DOL at 18,500 units.

Profit = (14.53 * 18,500) - fixed costs of $176,280

= $92,525

DOL = Contribution/ Profit

= (14.53 * 18,500) / 92,525

= 2.91

DOL at 16,500 units.

Profit = (14.53 * 16,500) - 176,280

= $63,465

DOL = (14.53 * 16,500) / 63,465

= 3.78


Related Questions

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.8. If the stock market increases in value by 5 percent, what is the expected increase in value for the World-Wide Productions stock?

Answers

Answer:

Stock increase = 14%

Explanation:

Market increase = 5%

Stock Beta = 2.8

Stock increase = Stock beta * Market Increase

Stock increase = 2.8*5%

Stock increase = 0.14

Stock increase = 14%

Avery Co. has $1.1 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt

Answers

Answer:

0.26

Explanation:

Given that :

Value of debt = $1.1 million

Value of preferred stock = $1 million

Value of common equity = $2.2 million

Total value of company's funds :

(value of debt + value of Preffered stock + value of common equity)

(1.1 + 1 + 2.2) million

= $4.3 million

Hence, weight of debt :

Value of debt / total value of company's funds

$1.1 million / $4.3 million

= 0.2558

= 0.26

Below is a table for the present value of $1 at Compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 0.890 0.826 0.797
3 0.840 0.751 0.712
4 0.792 0.683 0.636
5 0.747 0.621 0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year 6% 10% 12%
1 0.943 0.909 0.893
2 1.833 1.736 1.690
3 2.673 2.487 2.402
4 3.465 3.170 3.037
5 4.212 3.791 3.605

Using the tables provided, if an investment is made now for $23,700 that will generate a cash inflow of $7,900 a year for the next 4 years, the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of 10%, is:________

Answers

Answer: $‭1,343‬

Explanation:

Net Present Value = Present value of Cash inflows - Present value of Cash outflows

Cash inflows are constant and so are an annuity.

Present value of Cash inflows = Annuity * Present value interest factor of annuity, 4 years, 10%

= 7,900 * 3.170

= $‭25,043‬

Net Present Value = ‭25,043‬ - 23,700

= $‭1,343‬

On January 1, 2020, Smith Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%.

Present value of 1 for 8 periods at 6% 0.627
Present value of 1 for 8 periods at 8% 0.540
Present value of 1 for 16 periods at 3% 0.623
Present value of 1 for 16 periods at 4% 0.534
Present value of annuity for 8 periods at 6% 6.210
Present value of annuity for 8 periods at 8% 5.747
Present value of annuity for 16 periods at 3% 12.561
Present value of annuity for 16 periods at 40% 11.652


a. The present value of the interest is:_________
b. The present value of the principal is:_________
c. The price of bond is:_________

Answers

Answer:

a. The present value of the interest is:_________

PV of coupon payments = coupon x PV annuity factor, 4%, 16 periods = $180,000 x 11.652 = $2,097,360

b. The present value of the principal is:_________

PV of face value = face value x PV 4%, 16 periods = $6,000,000 x 0.534 = $3,204,000

c. The price of bond is:_________

market price of the bonds = $2,097,360 + $3,204,000 = $5,301,360

since the market rate is higher than the coupon rate, the bonds will always be sold at a discount

40 points Please answer
Discuss how the marketing mix affects your daily life. How might you use what you know about marketing in your career?

Answers

Explanation

I cannot even count the amount of times in our daily lives where we have to make decisions. If you invest a few minutes in analyzing it, the result would be the thought of endless products, services and life decisions being made every day some of them without even much thought

What should I wear

What should I eat

What am I going to do today

What school should I choose

Will I be buying my coffee from Starbucks, McCafe or at my local coffee shop?

In particular, product and services related decisions have turned to be routine answers made automatically every day, they help move the economy of cities, countries and ultimately the world.

Which stage of an industry's growth cycle offers the greatest opportunity for an investor who is seeking capital gains?

a. initial development
b. mature growth
c. stability or decline
d. rapid expansion

Answers

Answer:

d. rapid expansion

Explanation:

The main objective of an investor is to invest his capital in an industry that generates profits. Therefore, analyzing the above question, it is correct to say that an organization that is expanding its business quickly, is achieving success in the market in which it operates, so this alternative is ideal for an investor seeking capital gains.

Initial development would be an alternative that does not have a real return for the investor, mature growth is also not the most profitable option, and the stability or decline option does not present a profitable and reliable alternative for an investor.

Whenever significant expansionary policies are implemented and left in place for at least half a year or more, the likely result is:_____.

Answers

Answer:

It starts effecting price level - inflationary pressure in economy.

Explanation:

Expansionary policies are aimed at increasing Aggregate Demand, by Fiscal or monetary approach.

Fiscal expansion policy include increasing government public expenditure, reducing government tax revenue. Monetary Expansion policy aim include credit expansion - from decreased LRR, decreased bank rate, decreased marginal requirement etc

Significant expansion policy left for more than half an year, start exerting inflationary pressure on the economy price level.

Answer:

high inflation or reduced government spending

Explanation:

Maria, a certified financial planner, must also be a licensed attorney to be appointed Trustee of a bankruptcy estate. A. True B. False

Answers

Answer: False

Explanation:

Bankruptcy Trustees are usually lawyers and this is why people think that they must always be lawyers but this is not the case.

The United States Trustee who is an officer of the Department of Justice and the one in charge of appointing Bankruptcy Trustees, can appoint a person other than a licensed attorney to be the representative of an estate for bankruptcy related matters (trustee) such as accountants or financial planners.

Elucidate four proprties associated with a bona fide business plan​

Answers

Answer:

E-2 treaty investor visas are for citizens of countries with which the United States maintain treaties of commerce and navigation. A business plan is one form of evidence that can be used to help demonstrates that the E-2 application meets program requirements.

Explanation:

A seller (or provider) of goods or services to a business organization is known as a:
A Vendor.
B Payee.
C Vendee.
D Creditor.
E Debtor.

Answers

Answer:

A. Vendor.

Explanation:

This individual or company would be known as a vendor. These individual/company offer others a specific good or service for their own personal or commercial use. These individuals/companies make money by manufacturing the product and selling them to others and making a profit in the process. Usually they also sell these products in bulk which still nets them good profit and provides a cheaper price to the buyer.

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $12 per hour. During August, Hassock produced 19,000 units and used 38,140 hours of direct labor at a total cost of $454,680. What is Hassock’s labor efficiency variance for August?a. $2,989 favorable.
b. $3,000 unfavorable.
c. $3,000 favorable.
d. $5,989 favorable.
e. $2,989 unfavorable.

Answers

Answer:

the labor efficiency variance for August is $1,680 unfavorable

Explanation:

The computation of the labor efficiency variance is shown below:

Labor efficiency variance is

= (Standard hours - Actual hours) × Standard rate

where,

Standard hours is

= 19,000 units × 2

= 38,000 hours

Now

Labor efficiency variance is

= (38,000 - 38,140) × $12

= $1,680 unfavorable

Hence, the labor efficiency variance for August is $1,680 unfavorable

This is the answer and the same is not provided in the given options

BIZZ0 estimated that income for January would be $53,500 and expenses would be $37,250. The actual income was $48,500 and the actual expenses were $35,000. What is the variance for the balance (income − expenses)?

Answers

Answer:

the  variance for the balance is $2,750 favorable

Explanation:

The computation of the variance for the balance is shown below:

= Income - expenses

= (Estimated income - actual income) - (estimated expenses - actual expenses)

= ($53,500 - $48,500) - ($37,250 - $35,000)

= $5,000 - $2,250

= $2,750 favorable

Hence, the  variance for the balance is $2,750 favorable

We simply applied the above formula so that the correct value could come

And, the same is to be considered

How you will gather and formulate your data

Answers

Answer:

1.Identify issues and/or opportunities for collecting data. ...2.Select issue(s) and/or opportunity(ies) and set goals.3.Plan an approach and methods. ...4.Collect data. ...5.Analyze and interpret data. ...6.Act on results.

Raymond Co. has $1.1 million of debt, $2 million of preferred stock, and $2.1 million of common equity. What would be its weight on preferred stock?

Answers

Answer:

0.3846

Explanation:

Given that :

Amount of debt = $1.1 million

Amount of preferred stock = $2 million

Amount of common equity = $2.1 million

Total value of company's finance funds :

(Amount of debt + Amount of Preffered stock + Amount of common equity)

(1.1 million + 2 million + 2.1 million)

= $5.2 million

Hence, weight on preferred stock:

Amount of preferred stock / total value of company's finance

$2 million / $5.2million

= 0.3846

Hence, weight of Preffered stock = 0.3846

If a central bank wishes to reduce inflation, it should announce its intentions and follow through with them, thereby using _________ monetary policy.
A. visible
B. integral
C. credible
D. authoritative

Answers

Answer:

C. credible

Explanation:

A credible monetary policy is the policy where the problem of inconsistency of time can be avoided also the biasness of the inflation also it keeps the inflation under a control.

Therefore in the case when the central bank wants to decrease the inflation so they are using the credible monetary policy

Hence, the correct option is C.

What was the economy like before the corona virus??


Please help!!

5-8 lines

Answers

Answer:

BEFORE the virus, the economy was running (not perfectly) but smoothly. You could go to school without the worry of a death sentence. Marriages were more common before the virus. Concerts were available. You could go out and do things. Bears didn't have to leave the mountains for food. Businesses were running easier.

Explanation:

I hope this helps.

What evidence demonstrating your own leadership development have you gathered so far? (please list)

Answers

Answer:

The evidence that shows my own leadership development is:

Communication capacity Organization Calm and rationality proactivity ability to work as a team.

Explanation:

Although there is still a long way to go for me to consider that I have a strong leadership spirit, I can consider some evidences in my personality and my abilities that announce that I have developed as a leader. Among these evidences I can mention my ability to communicate with people, explaining concepts and attitudes that we must have to reach our goals. This is linked to my ability to work as a team, managing it to success.

They are also a calm and rational person, which shows that I will have good control in the face of difficulties that may arise, without forgetting that I am very proactive and organized, which will facilitate the work to be done.

g Briefly explain why data visualization is important. Support with an example from the activity

Answers

Answer:

Visualization is important because every body learns slightly differently. Some people learn from doing the task hands-on, some people learn from watching someone else do the task, some people learn from reading about it, hearing about it etc etc. It is also important to show visuals to show your answer, and/or reasoning in greater detail; say that you are giving a presentation about stocks, you could just write about it, but if you show graphs, pictures, and other visuals, then you'll get your point across a lot faster, and look professional in the process

I don't know the activity so I can't give an example from "this activity" it hopefully you find some help fro this

Explanation:

May I have brainliest please? :)

The process of obtaining and placing information in a visual environment is known as data visualization. For human brain, data visualization detects patterns, trends and contours of data sets.

Data visualization can aid in the most efficient delivery of information.Data visualization is and important part of the business intelligence process because it takes raw data, transforms it, and makes it available for conclusions. Data scientists create machine learning algorithms in Advanced Analytics to better compile essential data into visualizers that are easier to comprehend and interpret. Visual data is used in data visualization to transmit information globally, swift and effectively.

To know more about data visualization, refer to the link:

https://brainly.com/question/14467658

A company had total sales of $610,000, net sales of $566,400, and an average accounts receivable of $96,000. Its accounts receivable turnover equals:

Answers

Answer:

5.9

Explanation:

Calculation for It's accounts receivable turnover using this formula

Accounts Receivable Turnover = Net Sales amount /Average Accounts Receivable amount

Let plug in the formula

Accounts Receivable Turnover =$566,400/$96,000

Accounts Receivable Turnover = 5.9

Therefore Its accounts receivable turnover equals: 5.9

If your nominal rate of return is 14.38 percent and your real rate of return is 4.97 percent, what is the inflation rate

Answers

Answer:

try 1.35

Explanation:

Organizations must use software tools to process data into meaningful information to make _____ useful.

Answers

Answer:

data warehouses

Explanation:

In the science of computing, we can also call a data warehouse, to be an enterprise data warehouse, this is a system that is used for reporting and also analysing data, a data warehouse is known to be a very central part of business intelligence.

Organizations must use software tools to process data into meaningful information to make data warehouses useful.

Which of the following choices include only accounts that appear in the asset section of the balance sheet?Multiple Choice Prepaid supplies, unearned revenue, accounts payable Accounts payable, equipment, prepaid insurance Cash, prepaid rent, accounts receivables Common stock, prepaid rent, notes payable

Answers

Answer:

C. Cash, prepaid rent, accounts receivables.

Explanation:

A balance sheet can be defined as the financial statement that gives a detailed summary of the financial balance of a business firm or individual at a specific period of time. Therefore, it typically comprises of assets, liabilities, capital, debt, equity etc.

In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, cash, rent and accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.

Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.

Hence, account receivables, cash and rent are assets on the balance sheet, which are listed in order of liquidity.

The choice that include only accounts that appear in the asset section of the balance sheet are Cash, prepaid rent, and accounts receivables.

Considering the needs of a global audience is essential to success in the hospitality and tourism industry?

Answers

Answer:

True

Explanation:

In simple words, the hospitality and tourism industry refers to the activities related to accommodation, restaurant and tourism etc. In such industries the main focus of the companies is the comfort and joy of their clients. This becomes difficult to implement as every individual have different needs and circumstances. Thus, the planning of activities should be made in such a way that it suited the global audience.

Jackie is considering obtaining a mortgage of $333,000.A lower APR is available,but she must pay 1.75 points to buy the rate down.How much must Jackie pay in dollars?
A) $1,357
B) $3,300
C) $5,828
D) $8,333

Answers

The Answer is: C) 5,828

Ticker IBS is traded on the Pacific, Gulf and Atlantic stock Exchanges. The sequence of bids in the consolidated record is:

Time Exchange Bid

10:00:01 Atlantic 23.33
10:00:02 Pacific 23.32
10:00:03 Gulf 23.34
10:00:04 Pacific 23.40
10:00:05 Gulf 23.45
10:00:06 Pacific 23.44
10:00:07 Atlantic 23.43
10:00:08 Gulf 23.40

The NBB at 10:00:07 is:_______

a. 23.32
b. 23.43
c. 23.45
d. 23.44

Answers

Answer:

c. 23.45

Explanation:

National best bid (NBB) is the highest bid price across all the nation at a given point of time. In this question, 23.45 is the highest bid price from Gulf before 10:00:07

a community hospital in pennsylvania has a 15% supply expense ratio. If total operating expenses are $1 million this month, what is the total annual cost of supplies

Answers

Answer:

$150,000

Explanation:

The question says that the total operating expenses of the hospital is 1 million, while also saying that it has a supply expense ratio of 15%. An expense ratio can be by dividing a fund's total operating expenses it's average dollar value of its assets under it's management. This is what gave us the 15% we got in the question. Now, to get the total supply cost in dollars (not percentage), all we is multiply the percentage by the total cost we were given. Thus,

Total annual cost of supply =

15% * 1,000,000 =

15/100 * 1,000,000 =

$150,000.

Therefore, the total annual cost of supply is $150,000

A $5,000 face value bond has a coupon rate of 6.5%, sells for $5,937, and matures in 7 years. What is its yield to maturity?a. 3.44%.b. 5.47%.c. 6.12%.d. 4.08%.

Answers

Answer:

YTM = 0.03495343461 or 3.495343461% rounded off to 3.50%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

Where,

C is the coupon payment

F is the Face value of the bond

P is the current value of the bond

n is the number of years to maturity

Assuming that the bond  pays coupon annually,

Coupon payment = 5000 * 0.065 = $325

Number of periods remaining till maturity = 7

YTM = [ (325 + (5000 - 5937 / 7))  /  (5000 + 5937 / 2)

YTM = 0.03495343461 or 3.495343461% rounded off to 3.50%

PLS HELP ASAP

Owners equity includes (______), which is the amount of profits that your business has been able to save over the past few years.

Answers

Retained earning
Explanation:
A company's profits are distributed to shareholders as dividends, retained in the business for reinvestment, or both. Therefore, retained earning are profits that were not distributed to shareholders. They are funds that belong to owners but withheld for use in the business.
Retained earnings form part of a company's capital. It is money that shareholders have contributed to the business by not sharing in profits.

Trying to solve every problem on your own shows that you are responsible true or false

Answers

Answer:

True

Explanation:

What kind of question is this?

Answer:

I solve questions that I recognize

According to the Institute of Management Accountants (IMA), the final step in resolving an ethical dilemma is to:

Answers

Answer: A. consult your own attorney as to legal obligations and rights concerning the ethical conflict.

Explanation:

After considering the relevant implications of an ethical dilemma, the final step is to reach out to your own lawyer to find out your legal rights as well as obligations concerning the courses of action that are presenting the dilemma.

The logic is that your own attorney should have your best interests at heart and so will tell you what each action could do to you which will then help you decide which course of action to take.

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