Operating leverage. Duxbury Co. reports the following data for product ABC and product XYZ for the current year:
ABCXYZ
Sales $ 36,00028,800
Variable cost 12,00010,800
Total fixed cost$18,00016,000
Required:
(a) What is operating leverage? How can the degree of operating leverage be used in analyzing changes in sales?
(b) Calculate Duxbury's pretax income.
(c) Calculate Duxbury's degree of operating leverage. Explain your answer if the company projects an increase or decrease in sales of each product by 10%.
Answers: 1
Business, 21.06.2019 22:30
Abusiness cycle reflects in economic activity, particularly real gdp. the stages of a business cycle
Answers: 2
Business, 22.06.2019 08:50
Comprehensive illustrative problem: mira's store on february 1 20a4 mica delaman opened astore that sells school supplies her main customer are the students and teachers of happy students school that is situated in front of her store. mira wanted to know the financial position of mira's store. mira knew you were studying accounting. so she asked for . 1. to start her business mira's opened a checking account in the name of mira's store . the statement of account from the bank shows that the checking account has a balance of 31,535 of december 31,20a4
Answers: 2
Business, 22.06.2019 10:00
University car wash built a deluxe car wash across the street from campus. the new machines cost $219,000 including installation. the company estimates that the equipment will have a residual value of $19,500. university car wash also estimates it will use the machine for six years or about 12,500 total hours. actual use per year was as follows: year hours used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 prepare a depreciation schedule for six years using the following methods: 1. straight-line. 2. double-declining-balance. 3. activity-based.
Answers: 1
Business, 22.06.2019 12:30
Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.
Answers: 2
Operating leverage. Duxbury Co. reports the following data for product ABC and product XYZ for the c...
Social Studies, 03.03.2022 14:00
Mathematics, 03.03.2022 14:00
History, 03.03.2022 14:00
Mathematics, 03.03.2022 14:00
Business, 03.03.2022 14:00
Chemistry, 03.03.2022 14:00
Social Studies, 03.03.2022 14:00
Chemistry, 03.03.2022 14:00
Mathematics, 03.03.2022 14:00