Interpret the meaning of the dol, Corporate Finance

Company X produces tea kettles, which it sells for $12 each. Fixed costs are $650,000 for up to 400,000 units of output. Variable costs are $8 per kettle.

a. What is the breakeven point?

b. What is Company X's degree of operating leverage at a sales level of 200,000 units?  Interpret the meaning of the DOL?

c. If sales increase by 10%, how much will EBIT change?

Posted Date: 2/28/2013 4:54:58 AM | Location : United States

Related Discussions:- Interpret the meaning of the dol, Assignment Help, Ask Question on Interpret the meaning of the dol, Get Answer, Expert's Help, Interpret the meaning of the dol Discussions

Write discussion on Interpret the meaning of the dol
Your posts are moderated
Related Questions
You are required to provide a report of approx 500 words or less (excluding attachments and references), accompanied by relevant calculations, in MS Word, MS Excel and/or PDF forma

QUESTION Assume Venture Healthcare sold bonds that a 10 year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. a. Suppose that two years after the bo

Hi, I would like someone to accomplish my corporate finance paper Objectives o To understand the financial profile of the selected company. o To project future cash flows of the co

Profit for the year R3 million R4 million Gross dividends R1.5 million R2 million Market value per ordinary share R4 R1.60 Number of ordinary shares 5

Problem 1 What is a bill of exchange? Explain carefully the requisites for a bill of exchange to be valid.  Problem 2 You have a close friend, Peter, who is a renowned

Solution of the Black-Scholes model is obtained through a transformation into a heat equation. The general one-dimensional heat equation is given by where α > 0 is a consta

The Directors of Rohan Plc are discussing the importance of the dividend policy on the market value of their firm. The Chairman considers that the dividend is important and does

Review of Revenue This activity will require you to access at least a portion of the federal budget as well as a state, local and an agency budget. This can be done online. Howeve

The chocolate icecream company and vanila icecream company has mergeged to form fudge cnsolidated. Both the companies are exactly alike and situated in two different towns. The end