User Account

All Pages

Which firm is facing more risk in terms of its current sale

Assignment Help Accounting Basics
Reference no: EM13970208

The following information is about two organisations, A and B.

 

Organisation A

Organisation B
 

£

£

Fixed costs

60,000

12,000

Variable costs per unit

0.2

0.5

Unit selling price

0.6

0.6

Expected sales levels (units)

160,000

160,000

1. Which firm has higher operating gearing?

2. What is the expected net income of both firms?

3. Would expected net income be for both firms if sales were a) 140,000 units and b) 180,000 units?

4. Which firm is facing more risk in terms of its current sales predictions?

Reference no: EM13970208

Questions Cloud

Write a computer program to verify your guess : The maximum likelihood estimate for D is the number of defectives which gives the highest probability for obtaining the number of defectives observed in the sample. Guess this number D and then write a computer program to verify your guess.
What is the application/service date and applicable release : Does it provide a new application/service, replace an existing application/service, or enhance an existing application/service?
How do you calculate the final rate of return on beginning : How do you calculate the final rate of return on beginning and end stock prices? Example: My beginning stock was worth 4,129 and the end stock was worth 1,922.50
What is the distribution of x : Let X be the random variable which counts the number of cars that, in a given unit of time, pass by Joe's Barber Shop on Main Street. What is the distribution of X?
Which firm is facing more risk in terms of its current sale : Which firm has higher operating gearing. What is the expected net income of both firms. Would expected net income be for both firms if sales were a) 140,000 units and b) 180,000 units. Which firm is facing more risk in terms of its current sales pred..
What is the probability that he finds at least one fake : What is the probability that he finds at least one fake? What is it if the king tests 2 coins from each of 250 boxes?
Write a research about a crime and its crimenal and his life : Write a research about a crime and it's crimenal and his life and background, like every thing about this crimenal, also why did he committed that crime. 2 pages APA formatted and the works cited.
Classify each performance measure as belonging to financial : Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth.
Write a brief summary of each class : Suppose that the ArrayStack resized (grew) by creating a new array of size l each time. The value of l is arbitrary but finite (and fixed). Show that the worst case of adding an element is no longer O(1). In particular, show that the cost of resi..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Communication privacy policies at the workplace

The ‘best practices' in communication privacy policies at the workplace, as we've read, are ideally designed in order to maintain protection of a company's financial interests, as well as maintenance of privacy and control over any information dee..

  Cost flow assumption give lower taxes during inflation; lifo

Which cost flow assumption give lower taxes during inflation; LIFO or FIFO?

  Beacon company is considering two different mutually

beacon company is considering two different mutually exclusive capital expenditure proposals. project a will cost

  How do stock ownership requirements differ for a c and s

how do stock ownership requirements differ for a c and s corporation? is there a difference in income reporting by the

  Furniture inc specializes in the production of futons it

furniture inc specializes in the production of futons. it uses standard costing and flexible budgets to account for the

  Show how high performance would report receivables

Show how High Performance would report receivables on its balance sheet after all entries have been posted.

  Calculating built-in gains tax liability

There are no earnings and profits from C corporationn years. Calculate Sonny's built-in gains tax liability.

  Accounting practices and entries

Write a 700- to 1,050-word paper in APA format comparing and contrasting the different types of accounting, namely accrual, cash flow, and fund accounting. Be sure to consider the following:

  On april 1 2010 dougherty inc entered into a

on april 1 2010 dougherty inc. entered into a cost-plus-fixed-fee contract to construct an electric generator for altom

  Summit has learned that a competitor plans to introduce a

. susummit products inc. is interested in producing and selling an improved widget. market research indicates that

  Department 65 has an issue of preferred stock that pays a

department 65 has an issue of preferred stock that pays a dividend of 4.00. the preferred stockholders require a rate

  Prepare a schedule to determine the incremental cost or

a company manufactures an electric motor that is uses inseveral of its porducts. management is considering whether

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd