OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its variable costs per unit are $140. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many.
a. What is the firm's degree of operating leverage in going from a recession to a strong economy?
b. If the economy enters a recession, what will be the firm's after-tax profit?
Answers: 2
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Industrial engineers who specialize in ergonomics are concerned with designing workspace and devices operated by workers so as to achieve high productivity and comfort. a paper published in this research area reports on a study of preferred height for an experimental keyboard with large forearm-wrist support. a sample of 31 trained typists resulted in an average preferred height of 80.0 cm
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OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its v...
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