Normal economic conditions and degree of operating leverage

Assignment Help Financial Management

Reference no: EM131071025

You estimate that your cattle farm will generate $.20 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 5. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)

a. What will profits be if sales turn out to be $3.2 million?

Profit will (increase/decrease) to $ million.

b. What if they are $4.8 million?

Profit will (increase/decrease) to $ million.

Reference no: EM131071025

Questions Cloud

Common criteria for choosing off-the-shelf software : 1) Identify the products of the SDLC phases. 2) Identify the most common criteria for choosing off-the-shelf software. Which two criteria would be among the most important? 3) Define project planning. Identify ten project planning activities.

Calculate the non-operating terminal year cash flow : Pierre Imports is evaluating the proposed acquisition of new equipment at a cost of $90,000. In addition the equipment would require modifications at a cost of $10,000 plus shipping costs of $2,000. Calculate the non-operating terminal year cash flow..

Being responsible sometimes means pissing people off : Good leadership involves responsibility to the welfare of the group, which means that some people will get angry at your actions and decisions. It's inevitable, if you're honorable. Trying to get everyone to like you is a sign of mediocrity:

Are wars good for the economy : Are wars good for the economy?

Normal economic conditions and degree of operating leverage : You estimate that your cattle farm will generate $.20 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 5. What will profits be if sales turn out to be $3.2 million? What if they a..

Like-kind exchange xenon corporation : Q Like-Kind Exchange Xenon Corporation can sell an auto used in its business for $4,000 and purchase a new auto for $20,000. Alternatively, it can trade in the auto on a new one from a different dealer.

Prepare a narrative justification for the initiation : Prepare a narrative justification for the initiation of such a system.

Connection head executive : Appropriate preparing is one of the fundamental devices in keeping up a fruitful OHS program. Without preparing, all the business' approaches and techniques are just words in composing.

Determine whether or not you believe the notion : Determine whether or not you believe the notion that an officer or investigator's first questions at the scene should be, "Where's the phone? Can we get access to the phone?" Provide a rationale for your determination.

User Account

All Pages