Calculate the degree of operating leverage for the company

Assignment Help Financial Management
Reference no: EM131886193

Calculate the degree of operating leverage for the company below:

Expected Quantity          50,000

Total costs                      300,000

Variable costs                 215,000                DOL ______________

Operating Cash Flow      250,000

If actual quantity is 56,000 units, the percentage increase will be___________

If this happens, OCF will increase by what %? ______________

New OCF amount __________________

Reference no: EM131886193

Questions Cloud

Operating cycle and cash conversion cycle : A major difference between a venture’s operating cycle and the cash conversion cycle is the conversion cycle includes the time to:
What is the annual operating cash flow for project : what is the annual operating cash flow (OCF) for this project?
Annual payments on this interest-only loan : What are Kelsie's annual payments on this interest-only loan?
What do we mean by future value of an investment : What do we mean by future value of an investment and why is this important to you and your financial planning for the future?
Calculate the degree of operating leverage for the company : Calculate the degree of operating leverage for the company below. If actual quantity is 56,000 units, the percentage increase will be.
Tax credits-the estimated remaining discount expense : The estimated remaining discount expense that can be taken as a tax deduction as a result of a sale after a 7 year holding period is
What is the equivalent uniform annual worth of project : Haversham Consulting is taking on big project with a lifespan of 19 years. Using an interest rate of 6%, what is the equivalent uniform annual worth of project?
Pay dividends for the first five years of operation : Staton-Smith Software is a new? start-up company and will not pay dividends for the first five years of operation.
The tax basis of property acquired in like-kind exchange : The rationale behind IRS allowance of depreciation deductions is. The tax basis of property acquired in a like-kind exchange:

Reviews

Write a Review

Financial Management Questions & Answers

  Dividend discount model to value common stock

Which of the following is a problem using the dividend discount model to value common stock?

  How much money could the land owner have made

How much money could the land owner have made if they took $350 rent payment and placed in into an annuity paying 2% over the entire lifetime of the rental?

  Credit card application from shady banks savings

You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 3.5 percent per year,

  The annualized percentage rate

The annualized percentage rate (APR) on this 60 month loan is 6%. What will be your monthly payment?

  What is the bonds current yield

Three (3) years ago the Zappa Corporation issued a 20-year, 7% annual coupon bond at a price of $1,200. If interest rates have remained unchanged what is the bond's current yield today?

  Equity betas and debt and equity ratios

ABC identifies 5 comparable companies with the following “equity betas” and “debt/equity” ratios.

  What are the percentage return on your investment

What are the percentage return on your investment

  How many monuments should be built

Assume that there are 50 people of each type. Monuments cost $3,600 each to build. How many monuments should be built?

  Weakening dollar or constant value dollar

For a company that is planning to issue bonds in the US to raise a few billion dollars, what would be a desirable trend in the value of the US dollar (i.e. a strengthening dollar, a weakening dollar, or a constant value dollar) and why?

  Subordinated bond issued by large company

What is the interest rate on a 6-year, B-rated, Subordinated bond issued by a large company?

  Net working capital resulting from the addition of division

The change in net working capital resulting from the addition of the new division is _____.

  What are the pros and cons of the international sales

What are the pros and cons of the international sales? What additional risks will the company face?

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