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.

User Account

All Pages