Calculate that the degree of operating leverage

Assignment Help Financial Management

Reference no: EM131071434

At an output level of 85,000 units, you calculate that the degree of operating leverage is 3.50. Suppose fixed costs are $220,000. What is the operating cash flow at 79,000 units?

What is the degree of operating leverage?

Reference no: EM131071434

Questions Cloud

How much must he invest at the end of each year : Mr. McNab wants to retire in 20 years and estimates that he'll need $10 million at that time. If his money can earn 4% per year, how much must he invest at the end of each year in order to accumulate his fund? The annual factor is 29.778. A. $29,778 ..

What will be the new operating cash flow : A proposed project has fixed costs of $96,000 per year. The operating cash flow at 6,600 units is $96,200. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 6,600 to 7,100, what will be the new operating ..

What is the beta of stock b if: portfolio beta : What is the beta of stock B if: portfolio beta is 1.1 and portfolio is made up of 30% U.S. treasuries, 30% stock A and 40% stock B? Stock A has a risk level equivalent to the overall market.

The frequency and capacitor effectively blocks dc voltage : 1. The impedance of a capacitor is inversely proportional to the frequency and the capacitor effectively blocks dc voltage.

Calculate that the degree of operating leverage : At an output level of 85,000 units, you calculate that the degree of operating leverage is 3.50. Suppose fixed costs are $220,000. What is the operating cash flow at 79,000 units? What is the degree of operating leverage?

Discuss the three primary models of crm : Define and discuss the three primary models of CRM: the IDIC model; the QCI Model and the CRM Value Chain Model. How are these models similar? How do they differ?

Profit is defined as value of position at maturity minus : Table 2 gives today’s prices of one-year European put and call options written on a share of stock ABC at different strike prices. Call Price ($) Strike Price ($) Put Price ($) 13.30 100 8.30 10.45 105 10.45 8.30 110 13.30 6.50 115 16.50 Table 2 a) A..

Initial fixed asset investment-variable costs-quantity sold : Consider a four-year project with the following information: initial fixed asset investment = $470,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $30; variable costs = $20; fixed costs = $160,000; quantit..

Write a business plan of a company named organic pabulums : Write a business plan of a company named Organic Pabulums, The entire business plan of a company named Organic Pabulums is prepared. This company will be introduced into the business world. It will carry out its services in two platforms, online and ..

User Account

All Pages