What is degree of operating leverage at the level of output

Assignment Help Financial Management
Reference no: EM131526615

Consider a four-year project with the following information: initial fixed asset investment = $400,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $20; variable costs = $12; fixed costs = $100,000; quantity sold = 70,000 units; tax rate = 30 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.)

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.)

Reference no: EM131526615

Questions Cloud

What is the capital gain rate for this transaction : What is the capital gain rate for this transaction?
What is incremental annual cash flow from operations : What is the incremental annual cash flow from operations?
What is amount of the annual interest tax shield : What is the amount of the annual interest tax shield given a tax rate of 35%?
Calculate the npv of this investment : Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. Calculate the NPV of this investment.
What is degree of operating leverage at the 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?
Tax-free municipal bonds will be least attractive : Tax-free municipal bonds will be least attractive to a(n): A customer in the 28% tax bracket buys a 10% corporate bond at par. What is the investor's net yield?
Value of firm before and after the repurchase announcement : What is the market value of the firm before and after the repurchase announcement?
What will be the company stock price the stock split : Assuming that the stock split will have no effect on the market value of its equity, what will be the company's stock price following the stock split?
Find bobs yield rate for the twenty-year period : Find Bob’s yield rate for the twenty-year period.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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