Compute the degree of operating leverage

Reference no: EM13292003

Levin SdnBhd has fixed operating cost of RM72,000, variable cost of RM6.75 per unit, and selling price of RM9.75 per unit.

a) Calculate the operating breakeven point in units.
b) Compute the degree of operating leverage (DOL) using the following unit sales levels as a base: 25,000; 30,000; 40,000. Use the formula.
c) Graph the DOL figures that you can computed in part b(on the y axis) against base sale levels (on the x axis).
d) Compute the DOL at 24,000 units; add this point to your graph.
e) What principle does your graph and figures illustrate?

Reference no: EM13292003

Questions Cloud

Sun continuously radiates energy into space in all direction : The sun continuously radiates energy into space in all directions. Some of the sun's energy is intercepted by the earth. The average temperature of the surface of the earth remains a little above 300 K. Why doesn't the earth's temperature rise as it ..

Calculate the degree of financial leverage : Utara Savings and Loan SdnBhd has a current capital structure consisting of RM250,000 of 16% (annual interest) debt and 2,000 shares of common stock. The firm pays taxes at the rate of 40%.

Explain temperature above which the reaction is spontaneous : Estimate the temperature above which this reaction is spontaneous. DS0 = 16.1 J/K. CH4(g) + N2(g) + 163.8 kJ ® HCN(g) + NH3(g)

Determine what will be the value of the four outputs : Provide an output V to indicate that at least one of theinputs is present. The input with the highest subscript number has the highest priority. What will be the value of the four outputs if inputs D2 and D6 are 1 at the same time

Compute the degree of operating leverage : Levin SdnBhd has fixed operating cost of RM72,000, variable cost of RM6.75 per unit, and selling price of RM9.75 per unit.

Compute the average net force exerted on the ball : A billiard ball strikes and rebounds from the cushion of a pool table perpendicularly. The mass of the ball is 0.38 kg. What is the average net force (magnitude and direction) exerted on the ball by the cushion

Calculate the diode capacitances at a biases of 0v : A silicon diode with an area of 100mm´100mm is doped with ND=2e17cm-3 and NA=1e20cm-3. It has an IS=1fA, nonidealityfactor n=1 and tT=1ns. Consider room temperature of 300 Degree Kelvin.

Provide a brief statement on the issue : Should be succinct and to the point describing what the project is about. It is generally a one sentence statement and provide a brief statement on the issue and a concise outline of the paper content and structure.

Linear programming problem : Formulate the problem of finding the minimum cost way of sending flow through the network, from the source nodes to the sink nodes, subject to the node supplies/demands and the arc capacity restrictions, as a linear programming problem.

User Account

All Pages