Operating leverage at accounting break even level of output

Assignment Help Finance Basics
Reference no: EM1358006

Consider a 10-year project with the following information: initial fixed asset investment = $330,000; straight-line depreciation to zero over the 10-year life; zero salvage value; price = $37; variable costs = $13; fixed costs = $112,200; quantity sold = 47,124 units; tax rate = 35 percent. The degree of operating leverage at 47,124 units sold is . The degree of operating leverage at the accounting break-even level of output is . (Round your answers to 3 decimal places, e.g. 32.161.)

Reference no: EM1358006

Questions Cloud

Job-order costing variables : On July 1, Job 46 had a beginning balance of $1,235. During July, prime costs added to the job totaled $560. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job was $1,921.
Explain sometimes organizations must go outside the firm : Explain Sometimes organizations must go outside the firm to hire talent and thus bypassing employees already working for the firm.
Why pricing policy from above would you recommend : You are to consider pricing separately, pure bundling, and mixed bundling. Without computations, which pricing policy from above would you recommend. Please explain why.
Identify potential customer problems : Identify potential customer problems and explain how your business can solve these problems.
Operating leverage at accounting break even level of output : Consider a ten year project with the following data: initial fixed asset investment is $330,000; straight-line depreciation to zero over the ten year life; zero salvage value; price is $37; variable costs is $13.
Exit interviews are conducted by many employers : Exit Interviews are conducted by many employers with employees who are leaving the firm for any reason - Do you think exit interviews are a worthwhile procedure for HR departments?
Fund statements to government-wide statements : What GASB statement requires government wide statements and why? This answer should include a comment on the measurement focus and basis of accounting used.
Explain alternative ii was to add a new checkout counter : Explain Alternative II was to add a new checkout counter at the market and This alternative was analyzed using the single-server model
What would be the true weight of the satellite : A 2kg ball traveling to the right with a speed of 4 m/s collides with a 4 kg ball traveling to the left with a speed of 2 m/s. The total momentum of the two balls after the collision is what.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of the financial performance of the company

Computation of the financial performance of the company with the help of the ratios and industry average

  Determine the total cost to company

Pension Fund project which will be offered in 5 years, company purchases zero coupon U.S. Treasury Trust Certificates which mature in five years, when originally issued they were 12 percent coupons.

  Significant inherent risk

Suppose your Customer, General Television, produces televisions and during the current year acquired Micro Engineering, Inc., which manufactured flat panel plasma screens for computers so that it could compete in the market for flat panel televisions..

  Variability of the returns

If variability of the returns on big corporation stocks were to rise over the long term you would expect which of the following to occur as a result.

  Computation of emi of the loan

Computation of EMI of the loan and suppose you have decided to start saving money to buy a motorcycle for your loving spouse's

  Determine new book value per share

Atlantic Coast Resources is concerned about its book price per share, which is calculated by dividing the total equity on the balance sheet by the number of outstanding shares of stock.

  Identification of capital and revenue expenditure

Identification of capital and revenue expenditure and A new machine was accidently damaged during installation

  Conservatism and make accounting numbers

The conservatism principle arises because of concerns about management's incentives to overstate the company's performance

  Purchasing stock on leverage

You have $40,000 to invest on Sophie Shoes, a stock selling for $80 a share. The intial margin requirement is 60%. Ignoring taxes & commissions,

  Computation of yield from investment

Computation of yield from investment thus it is therefore well known that profits may be slim nowadays

  Cash management approach

A corporation uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000.

  Determine the payment expectations for mpfs and ipps

Research and discuss the differences and importance of : MPFS, IPPS, OPPS and DMEPOS. Which provider type is paid by which method? Determine the payment expectations for each type?

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