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Problem 17-27 OceanGate sells external hard drives for $148 each its total fixed costs are $28 million and its variable costs per unit are $89
Problem 17-27 OceanGate sells external hard drives for $148 each its total fixed costs are $28 million and its variable costs per unit are $89 The corporate tax rate is 30%. If the economy is strong, the firm will sell 7 million drives, but if there is a recession, it will sell only half as many o. What will be the percentage decline in sales if the economy enters a recession? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Percentage decline in sales b. What will be the percentage decline in profits if the economy enters a recession? (Negative value should be Indicated by a minus sign. Round your answer to 2 decimal places.) Percentage decline in profits b. What will be the percentage decline in pronts if the economy enters a recession? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) sed Porcentage decline in profits % OL c. Calculate the operating leverage of this form? (Round your answer to 2 decimal places.) DOL
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