Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC company sells printers. The level of Degree of Operating Leverage (DOL) of ABC company at its current level of sales of its printers is

image text in transcribed

ABC company sells printers. The level of Degree of Operating Leverage (DOL) of ABC company at its current level of sales of its printers is 1.36. ABC thinks it will be able to alter the unit sales of its printers by 7.95 percent. If this change occurs then, ignoring effect of taxes, ABC company's Operating Cash Flow (OCF) will change by \%. (Do NOT include the \% sign or any other text. Enter your answer as a percent and round your final answer to 2 decimal places, e.g. 12.34) QUESTION 8 ABC company currently sells 1274 units of printers per year and has a Operating Cash Flow (OCF) of $48251. The level of Degree of Operating Leverage (DOL) of ABC company at its current level of sales of its printers is 1.36. ABC thinks its unit sales of printers for next year will be 1833. If this change occurs then, ignoring the effect of taxes, ABC company's Operating Cash Flow (OCF) will change to $ (Do NOT include the \$ sign or any other text. Enter your answer rounded to 2 decimal places, e.g. 10002.34) QUESTION 9 Sam's company makes chairs. It incurs a fixed cost of $634200 per year, and the variable cost is $9.08 per unit. Sam sells 205716 chairs for $21 each in a year. Calculate Sam's company's Degree of Operating Leverage. lgnore interest and taxes in your computation. (Do NOT enter a comma or any other text. Round your answer to the nearest 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

States And The Reemergence Of Global Finance

Authors: Eric Helleiner

1st Edition

0801428599, 978-0801428593

More Books

Students also viewed these Finance questions