Calculate the degree of financial leverage

Assignment Help Financial Accounting
Reference no: EM132534963

United Snack Company sells 40-pound bags of peanuts to university dormitories for $60 a bag. The fixed costs of this operation are $671,600, while the variable costs of peanuts are $0.35 per pound.

Question 1: Whats the break-even point in bags ?

Question 2: Calculate the profit or loss (EBIT) on 11,000 bags and 24,000 bags.

Question 3: What is the degree of operating leverage at 19,000 bags and at 24,000 bags. (Round your answers to 2 decimal places)

Question 4: If United snack company had an annual interest expense of $35,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags.

Question 5: What is the degree of combined leverage at both levels of 19,000 bags and 24,000 bags .

Reference no: EM132534963

Questions Cloud

Why is education important to criminal justice professionals : Based on your Read assignment, why is an education important to Criminal Justice professionals? Be sure to cite and reference your sources.
Federalist representative democracy : Federalist representative democracy requires both personal responsibility, social responsibility of citizens through personal involvement in democratic process
What can be done to prevent such behavior : "Determine whether the state you reside in (a) requires school lockdown or safety drills in public school (b) mandates active shooter drills or (c) neither.
What is meant by selective incorporation : What is meant by selective incorporation? Discuss the history of this process and its importance on protection of individual rights.
Calculate the degree of financial leverage : If United snack company had an annual interest expense of $35,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags.
Screen design and test plan : Write integrated reports, using appropriate models, providing detailed analysis of given textual scenarios and Develop models using professional CASE tool
How the conduct satisfied the different elements : Research for a crime that has been reported in the media. Prepare a 1-2 page essay addressing the elements of crime-mens rea, actus reus, concurrence.
What price must you receive : After holding the bond for 4 years and receiving 4 interest payments, you sell the bond. What price must you receive (at time 4) if you now want to receive
Understand denotative vs. connotative language : In developing your paper and PPT, it is important to understand denotative vs. connotative language; the former is factual while the latter is expressive.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd