In the previous problem, suppose fixed costs are $175,000. What is the operating cash flow at 46,000

Question:

In the previous problem, suppose fixed costs are $175,000. What is the operating cash flow at 46,000 units? The degree of operating leverage?

In previous problem

At an output level of 53,000 units, you calculate that the degree of operating leverage is 3.21. If output rises to 57,000 units, what will the percentage change in operating cash flow be?

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Question Posted: Nov 21, 2016 08:20 AM

See More Questions

Scenario Analysis In the previous problem, suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within 10 percent. Calculate the best-case and...
Leverage In the previous problem, suppose fixed costs are $150,000. What is the operating cash flow at 48,000 units the degree of operating leverage?
In the previous problem, suppose the projections given for price quantity, variable costs, and fixed costs are all accurate to within 10 percent. Calculate the best-case and worst case NPV figures.
Three years ago, Witt Gas Controls purchased equipment for $80,000 that was expected to have a useful life of 5 years with a $9000 salvage value . Increased demand necessitated an upgrade costing...
Duncan Company reports the following financial information before adjustments. Instructions Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at (a) 1%...
Derive an integral expression for H(z) inside the unit circle in terms of Re{H(e j )} when h[n] is a real, stable sequence such that h[n] = 0 for n > 0.
Why do you need a good WBS to use project management software? What other types of software can you use to assist in project scope management? LO.1
Define the concept of scalability. Explain why it might be a good idea for owners of small businessesand managers in larger businessesto understand this concept.
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative...
The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a wholesaler of large, custom-built air-conditioning units for commercial buildings:...
At an output level of 53,000 units, you calculate that the degree of operating leverage is 3.21. If output rises to 57,000 units, what will the percentage change in operating cash flow be? Will the...
A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise...
The multiple linear regression model y = 0 + lxl +2x2 + 3x3 is fitted to a data set with n = 15 observations, and the parameter estimates ^0 = 65.98. ^1 = 23.65, ^2 = 82.04, and ^3, = 17.04 are...
In Exercises 25-28, construct a data set that has the given statistics. N = 8 2 3
Sample SAT scores for eight males and eight females are listed. Males 1010 1170 1410 920 1320 1100 690 1140 Females 1190 1010 1000 1300 1470 1250 840 1060
Best Actor 2018: Gary Oldman, Age: 59 Best Supporting Actor 2018: Sam Rockwell, Age: 49 The table shows population statistics for the ages of Best Actor and Best Supporting Actor winners at the...
Consider a market dominated by just two airlines, American and United. Each can choose to restrict capacity and charge a high price or expand capacity and charge a low price. If one of the two...
Using the product structure for Alpha in Solved Problem 14.1, and the following lead times, quantity on hand, and master production schedule, prepare a net MRP table for Alphas. Data From Problem...
What is the difference between a free trade association, a common market, and an economic union?
(a) Given a mean free path = 0.4 nm and a mean speed vav = 1.17 105 m/s for the current flow in copper at a temperature of 300 K, calculate the classical value for the resistivity of copper. (b)...
The next dividend payment by Blue Cheese, Inc., will be $1.89 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $38 per share,...
Staal Corporation will pay a $3.40 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a return of 11 percent on your...
Keenan Co. is expected to maintain a constant 4.8 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.9 percent, what is the required return on the companys...
Portfolio return and beta Personal Finance Problem Jamie Peters invested $ 1 1 3 , 0 0 0 to set up the following portfolio one year ago: a . Calculate the portfolio beta on the basis of the original...
. Emerson Cammack wishes to purchase an annuity contract that will pay him $7,000 a year for the rest of his life. The Philo Life Insurance Company figures that his life expectancy is 20 years, based...
Integrity Inc. can sell 20-year, $1,000 par value bonds paying semi-annual interests with a 10% coupon. The bonds can be sold for $1,050 each; flotation cost of $50 per bond will be incurred in this...

In the previous problem, suppose fixed costs are $175,000. What is the operating cash flow at 46,000

Question:

Step by Step Answer:

Input area Initial output level 53000 ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions