a. What is the degree of operating leverage of Modern Artifacts (in problem 14) when sales are
Question:
a. What is the degree of operating leverage of Modern Artifacts (in problem 14) when sales are $8,000?
b. What is the degree of operating leverage when sales are $10,000?
c. Why is operating leverage different at these two levels of sales?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 88% (9 reviews)
a Profit Revenues variable cost fixed cost depreciation 8000 6000 1000 600 400 DO...View the full answer
Answered By
Ajay Negi
Hi, I've completed my degree in engineering (Information Technology) from an NIT. Currently working as a software engineer. Wish to impart quality education to the future generation.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781259087585
6th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts
Question Posted:
Students also viewed these Business questions
-
A project has fixed costs of $1,000 per year, depreciation charges of $500 a year, revenue of $6,000 a year, and variable costs equal to two-thirds of revenues. a. If sales increase by 5%, what will...
-
Are the following statements true or false? Explain. a. In several recent years, non-financial corporations in Canada have repurchased more stock than they have issued. b. A Canadian corporation pays...
-
What is the pecking-order theory of optimal capital structure? If the theory is correct, what types of firms would you expect to operate at high debt levels?
-
Explain the concept of recursion in programming and provide an example of a recursive function.
-
A brick of mass 1.0 kg slides down an icy roof inclined at 30.0 ° with respect to the horizontal. (a) If the brick starts from rest, how fast is it moving when it reaches the edge of the roof...
-
P plc acquired 80% of the ordinary share capital of S plc for 150,000 and 50% of the issued 10% cumulative preference shares for 10,000, both purchases being effected on 1 May 2017. There have been...
-
Assume that an average firm in the office supply business has a 6% profit margin, a 40% total liabilities/assets ratio, a total assets turnover of 2 times, and a dividend payout ratio of 40%. Is it...
-
Wentworth Co. sold $3,000,000, 7%, 8-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums...
-
1. What are three major categories of tax base and cite at least one difficulty with each of the bases. 2. Brieftly discuss two important methods and the resulting consequences of financing deficit...
-
Opex Capital is a small investment advisory firm located in Portland, Oregon, that has been hired by Winston Winery to estimate the value of Hilco Wines. Hilco is a small winery that is being...
-
Modern Artifacts can produce keepsakes that will be sold for $80 each. Non-depreciated fixed costs are $1 ,000 per year and variable costs are $60 per unit. a. If the project requires an initial...
-
Go to Yahoo Finance (ca.finance.yahoo. com). a. Can you guess Dell's incremental cost for producing one computer? You probably have that amount in your wallet or purse! Let's estimate the sales...
-
Reconsider Prob. 174. Using EES (or other) software, plot the amount of power the transistor can dissipate safely as a function of the maximum case temperature in the range of 60C to 90C. Discuss the...
-
You have been employed as a systems analyst in the information systems organization of a medium-sized consumer goods manufacturer for three years. You are quite surprised when your manager offers you...
-
For your initial post, address the following: First, introduce yourself to the class by sharing a bit about yourself, such as your preferred name or pronouns, where you are from, what your major is,...
-
Question 8 : Consider the technology of Solar Panels. Which stage of the technology life cycle S curve is this technology in. Justify why ? Question 9 : The standard Product Life Cycle has 5 stages...
-
At Benihana restaurant a man wrenched his neck while ducking a piece of flying shrimp, requiring treatment by several doctors. By that summer, doctors determined surgery was necessary to treat...
-
You have just come into an inheritance of $25,000 from a distant relative, and you want to invest it for the long term. Provide an investment portfolio that includes five different stocks. Report the...
-
A producer of educational DVDs is producing an instructional DVD. She estimates that it will cost $90,000 to record the DVD and $5.10 per unit to copy and distribute the DVD. If the wholesale price...
-
The nitrogen atoms in N2 participate in multiple bonding, whereas those in hydrazine, N2H4, do not. (a) Draw Lewis structures for both molecules. (b) What is the hybridization of the nitrogen atoms...
-
Consider a four-year project with the following information: initial fixed asset investment = $475,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26;...
-
Natural resource extraction facilities (e.g., oil wells or gold mines) provide a good example of the value of the option to suspend operations. Why?
-
Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. Year 1 2 3 4 5 X 15% 26 7 -13 11 Returns Y 21% 36 13 -26 15
-
What are the major characteristics of plant assets? Choose one category of PP&E (land, land improvements, buildings or equipment) and describe the costs that may be capitalized with this asset.
-
An estimated 84 percent of enterprises now use cloud computing solutions involving multiple clouds, whereas less than 10 percent of large organizations employ just a single public cloud. Group of...
-
XYZ inc. was involved in a tax dispute with the national tax authority. The companys legal counsel estimates that there is a 75% likelihood that the company will lose the dispute and that the amount...
Study smarter with the SolutionInn App