Reference no: EM1361422
The Harley Health Club has asked you to review aspects of its financial condition, specifically its break even point and its use of leverage.
Management has supplied you with the following company information, along with corresponding data for the industry.
Harley Industry
Price per Unit $500.00 $525.00
Unit Sales (Memberships) 420,000 450,000
Interest expense $1,000,000 $2,000,000
Variable Costs (% Sales) 55.00% 58.00%
Fixed Costs $65,000,000 $55,000,000
Common Shares 5,000,000 7,000,000
Taxes 36.00% 36.00%
Use the following headings for your comparison:
Harley Industry
Sales
Less: Variable Costs
Less: Fixed Costs
EBIT
Less: Interest Expense
Earnings before Taxes
Taxes
Net Income
Earnings per Share
Break-even Point (Units)
Break-even Point ($)
Degree of Operating Leverage
Degree of Financial Leverage
Degree of Combined Leverage
Are there any significant financial changes you would suggest to management as a result of this analysis?
|
Explain advantages and disadvantages of consumer credit
: Discuss and explain the advantages and disadvantages of consumer credit and to make sure to explain what leverage is and why it is important.
|
|
Productions of nonterminals as right regular grammars
: Rewrite the productions for each of the following nonterminals as right regular grammars: Identifier, Float. Show the moves made using the DFSA for identifiers in accepting.
|
|
Why annual revenue growth has exceeded
: The manager is concerned that, despite the fact that the firm's competitors are comparatively small, collectively their annual revenue growth has exceeded 50 percent over each of the last five years.
|
|
Effect of wound healing
: Can you tell me how would her age effect her wound healing? I think her immobility, her diabetes, and her BMI will have a direct effect on her healing. Can you tell me why pathophysiologically why this is the case?
|
|
Degree of operating leverage
: The Harley Health Club has asked you to review aspects of its financial condition, specifically its break even point and its use of leverage.
|
|
Show service and product design
: Write a memo to the production department explaining the difference between service and product design and explain how it can incorporate service into the design process.
|
|
Illustrate what is the legal distinction between selling
: Illustrate what is the legal distinction between selling a product and licensing it. Many of the provisions in the UCITA were first proposed as a modification to Article 2 of the UCC. Why do you think the drafters decided to propose it as a separa..
|
|
How fast are the waves moving
: However, the current increases by just 0.11 A when R1 is removed, leaving R2 connected across the battery. Find (a) R1 and (b) R2.
|
|
How to request a speaker for an event
: Write a proposal letter to a respected community figure asking him to deliver a lecture and dinner speech at an annual festival.
|