Question
Golf Course Sensors (GCS) is now up and running and has created financial models and budgets for next year. GCS is forecast to sell 1000
Golf Course Sensors (GCS) is now up and running and has created financial models and budgets for next year. GCS is forecast to sell 1000 robots next year each at a price of $15K each.
The company expects to incur variable costs at 45% of revenues. And the company has forecast fixed costs including depreciation at $4.0M next year. The company pays taxes at 20% and has no debt.
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Based on these assumptions, what is the forecast pre-tax operating income?
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Based on these assumptions, what is the companys degree of operating leverage?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
9780135811603
