Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 03, 2024

A proposed project has fixed costs of $ 3 6 , 0 0 0 per year. The operating cash flow at 1 1 , 0

A proposed project has fixed costs of $ $36, 000$ per year. The operating cash flow at $11, 000$ units is $ $71, 000 .$

a $.$ Ignoring the effect of taxes, what is the degree of operating leverage?

b $.$ If units sold rise from $11, 000$ to $11, 400,$ what will be the increase in operating cash flow?

c $.$ What is the new degree of operating leverage?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

The supervisors of a rural county are interested in the proportion of property owners who support the construction of a sewer system. Because it is too costly to contact all 7000 property owners, a...

Answered: 1 week ago

Question

★★★★★

A food manufacturer claims that eating its new cereal as part of a daily diet lowers total blood cholesterol levels. The table shows the total blood cholesterol levels (in milligrams per deciliter of...

Answered: 1 week ago

Question

★★★★★

I put these into my general journal. I just want to make sure I'm correct on them because I messed up in multiple places. It would be very appreciated someone help go through and make the entries.

Answered: 1 week ago

Question

★★★★★

Review the Umar Book Chapter1 on Digital Enterprises (Section 1.3 through 1.5) and Chapter 2 on IT Planning (Section 2.3 through 2.6). Based on this information, develop a sketch of an IT Plan for...

Answered: 1 week ago

Question

★★★★★

1.What are primary reserves and secondary reserves and what are they supposed to do? 2.What is meant by OFF-BALANCE sheet? What is the total amount of SUNCORP BANK (AUSTRALIA) off-balance sheet items?

Answered: 1 week ago

Question

★★★★★

Scenario 1 Danielle is the office manager of a large business in the city. She is the only female staff member at the management level. The CEO (who is significantly older than her) often refers to...

Answered: 1 week ago

Question

★★★★★

987 Co. grants 123 Limited a sole license for the 987 CRM Software. Who may use the 987 CRM Software? O a. Only 123 O b. Only 987 O c. 123 and other licensees O d. 987 and the licensee

Answered: 1 week ago

Question

★★★★★

Risk preferences Investment 1 has a 50% chance of paying $100 and a 50% chance of paying $200. Investment 2 has a 50% chance of paying $50 and a 50% chance of paying $250. Both investments cost $130...

Answered: 1 week ago

Question

★★★★★

During the Covid-19 outbreak and Movement Restriction Order (MRO), daily routines of Malaysian has changed. Many business could not operate according to their normal routines and many business...

Answered: 1 week ago

Question

★★★★★

Below is a poorly written email. Rewrite it so that it includs the required points that define a professional business email. ( 1 0 marks ) Subject: URGENT Payment Issue Hey, I cannot believe you...

Answered: 1 week ago

Previous Question Next Question