Drewery Inc. has fixed costs of $50,000 and net operating income of $17,000. If sales increase by

Question:

Drewery Inc. has fixed costs of $50,000 and net operating income of $17,000. If sales increase by 18 percent, by how much will NOI increase? What would happen to NOI if sales decreased by 20 percent?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

See More Books

Question Posted: Oct 31, 2014 07:34 AM

See More Questions

What would happen to the dissolved load of a stream if the velocity decreased?
What would happen to the market demand curve for polyester suits, an inferior good, if consumers incomes rose?
What would happen to individual Canadian consumers or Canadian corporations who consistently spent more money than they earned?
Describe and sketch the surface. 16x + 16y -9z = 0
In Example 3 the eigenvalues were found for the matrix A and the conditioned matrix AH. Use these to determine the condition numbers of A and AH in the l2 norm, and compare your results to those...
What code would set a two second pause after every PyAutoGUI function call?
Give an example of an experiment where confounding may occur.
Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the...
Each problem is done incorrectly. please help me figure out the errors & solve the problem corrcetly. Please write out the explanation of error (written response) 1. The following responses were...
Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an upfront payment of $50,000. In return, for the next year the firm would have access to eight...
Niece Equipment Rentals of Del Valle, Texas, has recently been approached about the prospect of purchasing a large construction crane. The crane rents for $500 an hour but operator, fuel, insurance,...
Brackets, Inc. currently anticipates that if it had a 10 percent increase in sales, net operating profits would increase by 60 percent. If Brackets NOI is $14 million, what level of fixed costs does...
Assume that you are a trust officer for the Joss Bank. You are attempting to select a pharmaceutical manufacturer's stock for a client's portfolio. You have secured the following data: Required:...
Consider the following account balances (in thousands) for the Shaker Corporation In the Dec 31.2021 Cash $200,000 and Capital $2,000,000 and Retained earnings $1,500,000 The balances of raw...
Unless otherwise stated, assume gravitational acceleration g = 9.81 m/s and the density of water to be 1000 kg/m. Unless otherwise stated, give all numerical answers to 3 significant figures, such as...
The purpose of this installment is to classify stock, bond, and mutual fund investments, explore tools for their evaluation and select these securities based on your investment philosophy and goals....
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided...
Caldwell (2003) explores differences between the roles of leaders and managers. "Leaders...envision, initiate, or sponsor strategic change of a far-reaching or transformational nature. In contrast,...
Maurice deposits $\$ 4,200$ in a CD that yields $3.8 \%$ compounded annually for 3 years. How much is the CD worth after those 3 years?
Trade credit from suppliers is a very costly source of funds when discounts are lost. Explain why many firms rely on this source of funds to finance their temporary working capital.
Scott Drilling Company owns an oil and gas drilling rig. The company is continually spending money to repair, maintain, refurbish, and upgrade this unit. Below is a listing of various costs incurred....
A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the...
Crissie just won the lottery, and she must choose between three award options. She can elect to receive a lump sum today of $61 million, to receive 10 end-of-year payments of $9.5 million, or to...
Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 10% nominal interest rate, but it calls for semiannual payments beginning next June...
You would like to have a balance of $600,000 at the end of 15 years from monthly savings of $900. If your returns are compounded monthly, what is the APR you need to meet your goal?
Explain the importance of covariance and correlation between assets and understanding the expected value, variance, and standard deviation of a random variable and of returns on a portfolio.
On August 1 , 2 0 2 3 , Mark Diamond began a tour company in the Northwest Territories called Millennium Arctic Tours. The following occurred during the first month of operations: Aug. 1 Purchased...

Drewery Inc. has fixed costs of $50,000 and net operating income of $17,000. If sales increase by

Question:

Step by Step Answer:

Drewery Inc currently has fixed costs FC of 50000 and net operating income NOI ...View the full answer

Financial Management Principles and Applications

Students also viewed these Finance questions