Degree of operating leverage at given level of output

Assignment Help Financial Management

Reference no: EM131955569

Consider a four-year project with the following information: initial fixed asset investment = $480,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $32; variable costs = $22; fixed costs = $170,000; quantity sold = 78,000 units; tax rate = 32 percent.

What is the degree of operating leverage at the given level of output? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) Degree of operating leverage

What is the degree of operating leverage at the accounting break-even level of output? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) Degree of operating leverage.

Reference no: EM131955569

Questions Cloud

What is the best argument for the merger and acquisition : What concerns will regulators raise? And, finally, imagine you work for one of those companies. What is the best argument for the merger/acquisition?

Return on investment in bond may not equal yield to maturity : Explain why the realized return on an investment in a bond may not equal yield to maturity?

Describe and illustrate the above mcllroys law with examples : Describe and illustrate the above Mcllroy's law with examples. This law was published in 1968; is this law still valid today? Justify your answer with examples.

Demonstrate how a single interaction might be explained : Demonstrate how a single interaction that occurred in your own life ( as owner of your business) during the past .

Degree of operating leverage at given level of output : What is the degree of operating leverage at the given level of output? What is the degree of operating leverage at the accounting break-even level of output?

What is the value of a stock that pays an annual dividend : Using a dividend discount model, what is the value of a stock that pays an annual dividend of $5 that is not expected to grow and the discount rate is 10%?

New ferry has sixteen-year life for taxation purposes : According to the Australian Taxation Office (ATO) the new ferry has a sixteen-year life for taxation purposes.

The purpose of policy is to improve the lives : Sometimes, during heated discussions and debates about social policy, the underlying reasons for the policy go unnoticed.

What test of significance did the researchers use : What test of significance did the researchers use? This can usually be found in the "Discussion" section or reviewed in the "Methods" section.

User Account

All Pages