User Account

All Pages

Degree of operating leverage of modern artifacts

Assignment Help Finance Basics
Reference no: EM131152639

Problem: Modern Artifacts can produce keepsakes that will be sold for $280 each. Nondepreciation fixed costs are $4,200 per year, and variable costs are $220 per unit. The initial investment of $12,600 will be depreciated straight-line over its useful life of 6 years to a final value of zero, and the discount rate is 13%.

Required:

a. What is the degree of operating leverage of Modern Artifacts when sales are $30,800?

b. What is the degree of operating leverage when sales are $57,120?

c. Why is operating leverage different at these two levels of sales?

Reference no: EM131152639

Questions Cloud

Planning to deposit : You are planning to deposit $1500 at the end of each year for the next 10 years. If your bank pays 7% interest per annum on your account, how much money will you have at the end of the ten years?
Tax-equivalent value of these benefits : You are in the 25% tax bracket and as part of a new job have received $500 in tax-exempt benefits? What is the tax-equivalent value of these benefits?
Prepare an analysis showing the total cost saving : If the offer is accepted, Manson will save all variable costs but no fixed costs.- Prepare an analysis showing the total cost saving.
Use of modeling and simulation in network design : Although there are numerous benefits to the use of modeling and simulation in network design, there are also some downsides or limitation to the use of these technique on decision-making. List and briefly describe at least three examples of additiona..
Degree of operating leverage of modern artifacts : a. What is the degree of operating leverage of Modern Artifacts when sales are $30,800? b. What is the degree of operating leverage when sales are $57,120? c. Why is operating leverage different at these two levels of sales?
Supply chain decisions under conditions of uncertainty : Network design decisions must often be made under conditions of uncertainty, and in a global supply chain there are often many uncertainties. What tool would you use to evaluate supply chain decisions under conditions of uncertainty and why?
Analysis of current market conditions facing your product : Write a 1750-word analysis of the current market conditions facing your product, making sure that you address the following topics: Define the type of market in which your selected product will compete along with an analysis of competitors and cust..
What is the realised rate of return : What is the realised rate of return for those investors who bought the bond for $1000 when they were issued?
Analyze the trade-offs between inputs for the productivity : • Analyze the trade-offs between inputs for the productivity improvements. Analyze the advantages and disadvantages of global sourcing versus producing in the U.S

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the payout ratio

Neil Diamond Brokers, Inc., reported earnings per share of $4.00 and paid $.90 in dividends. What is the payout ratio?

  What is the product and why do you think it became scarce

describe a real or made up but realistic example of a product that went through a time of scarcity when demand was

  What is the value of a bond that matures in 20 years makes

what is the value of a bond that matures in 20 years makes anannual coupon payment of 40 and has a par value of 1000?

  What would be your estimate of the additional funds needed

A. What would be your estimate of the additional funds needed next year to support a 30 percent increase in sales? B. How would your answer in Part A change if the expected sales growth were only 15 percent?

  Determining the annual rate

Find out the compound amount if $6,400 is invested for 2 years at 12% compounded monthly. What difference would compounding daily make in this example?

  What would to say to argue policy beneficial to the firm

The Fed is scheduled to meet in one week to assess economic conditions and set monetary policy. Economic growth has been high, but inflation has also increased from 3 percent to 5 percent (annualized) over the..

  What would you pay today for a stock that is expected to

what would you pay today for a stock that is expected to make 1.50 dividend in one year if the expected dividend

  Universal set of ethical standards for business

Do you feel that it is possible to create a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical or impossible?

  Discuss the pros and cons of investing in the securities

Discuss the pros and cons of investing in the securities market and whether such investments would be a good investment for you personally right now. Explain your rationale.

  To assess the value of the firms stock financial analysts

imprudential inc. has an unfunded pension liability of 572 million that must be paid in 25 years. to assess the value

  Question based on bond and stock valuation

"SRK Airport" authority issued a series of 3.4% 30 year bonds in February 2012. Interest rates rose substantially in the given years of the issue and made value of the bond decline.

  Calculate the amount of money the couple

Calculate the amount of money the couple will need the first year Jazz starts college. Calculate the capital needs of the couple at retirement and the current value of their retirement needs.

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