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
Problem: (a) The Automated Clearing House (ACH) is an electronic payment network used by individuals, businesses, financial institutions and government organisations. (i) Ou


rf is 5% rM is 10% according to the SML and the CAPM, an asset with a beta of -2 has a required return of negative 5% (=5-2(10-5). can this be possible? Is this a negative asset w

The tax rates are as shown. Your firm currently has taxable income of $79,000. How much additional tax will you owe if you increase your taxable income by $30,000? Taxable Income

You are a ceo of a sotware firm that has limited access to debt equity markets. The average return on last year projects is 28 % . and cost of capital is 12%. would npv pr Irr be

a) Explain what you understand by ‘Branding'? b) A ‘Corporate identity' is often viewed as being composed of three parts; state them giving two examples of each. c) ‘Corpo

1)   Select an organization that you are familiar with and evaluate the steps needed to  transform  the business plans into Balance Score Cards & Key Performance Indicators 2)

Question 1: (a) Describe the following stock market anomalies which have been documented in the finance literature: (i) the January effect (ii) the Size effect (iii) t

how do you calculate it

Question 1 : The history of federalism can be broken down into three (4 really but we'll just focus on 3) historical phases (Dual, Cooperative, and New). Discuss each phase and eva