Degree of operating leverage

Assignment Help Other Subject
Reference no: EM131899827

Two firms, A and B, both produce brushes. The price of brushes is $1.30 each. Firm A has total fixed costs of $450,200 and variable costs of 50 cents per brush. Firm B has total fixed costs of $260,000 and variable costs of 72 cents per brush. The corporate tax rate is 30%. If the economy is strong each firm will sell 1,502,000 brushes. If the economy enters a recession, each firm will sell 979,000 brushes. Calculate Firm A's degree of operating leverage. How do I figure out the degree of operating leverage?

Reference no: EM131899827

Questions Cloud

What personal inhibitors will such an individual have : Wanda Brown had worked hard to achieve her rapid advancement from shipping/receiving clerk to shipping/receiving manager. She had an uncanny ability to focus.
Calculate your expected total return if you re-invest : You expect to hold the bond until maturity. Calculate your expected total return if you re-invest all coupons at 5 percent.
Why the creation of art should be made a fundamental part : Present an argument that you could deliver to a school board or college that explains why the creation of art, music, dance, sporting activity.
Discuss the properties of the bcg matrix : Walt Disney Company has four major strategic business units: movies (including Pixar and Touchstone), consumer products (Walt Disney World and Disneyland).
Degree of operating leverage : Calculate Firm A's degree of operating leverage. How do I figure out the degree of operating leverage?
Write out the inputs and expected output of these six tests : Write out the inputs and expected output of these six tests, and explain why you would choose them. Do not worry about error handling (yet).
Explain why your site is particularly significant : Summarise the history of your site. For example, what was the site and who occupied the site and when - Explain where your site is located and the significance
Think about strategies to improve short-term memory : For this Discussion, consider types of short-term memory. Think about strategies to improve short-term memory.
Expected return than your portfolio but with volatility : What portfolio has a higher expected return than your portfolio but with the same? volatility?

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

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