Computing degree of operating leverage

Assignment Help Finance Basics
Reference no: EM131951515

Question: Calculate degree of operating leverage given: Fixed costs: $83,000 per year OCF at 9100 units is $102,900. Ignoring the effect of taxes, what is the degree of operation leverage? If units sold rise from 9,100 to 9,500, what will be the increase in OCF? What is the new DOL?

Reference no: EM131951515

Questions Cloud

How does this structure tie into its product or service : What are the benefits of this type of structure for this company? Which of these areas/units are specific to being global?
School and in a professional setting : How confident are you in your ability to write, both for school and in a professional setting?
Illustrate the meaning of each type of service production : The design of service processes could be classified into three main categories namely: quasi-manufacturing; customer-as-participant and customer-as-product.
Difference between an organization analysis : What is the difference between an organization analysis, a task analysis, and a person analysis. How are they related?
Computing degree of operating leverage : Calculate degree of operating leverage given: Fixed costs: $83,000 per year OCF at 9100 units is $102,900. Ignoring the effect of taxes.
Component of the goal-setting process : Select a personal or professional goal you want to achieve. Address each part of the SMART technique -- specific, measurable, aggressive, realistic
What level of reliability of each part is necessary : A serial system is assembled in house from fifty parts. To be successful in the marketplace the system has to have three sigma reliability.
Why you think the case study person ended up the way : Research will be crucial to help create your argument for why you think the case study person ended up the way that they did.
Purpose of national greenhouse-energy reporting legislation : 1. What is the purpose of National Greenhouse and Energy Reporting legislation? 2. What is the purpose of Environment Protection and Biodiversity Conservation

Reviews

Write a Review

Finance Basics Questions & Answers

  How long has it been since job growth was this weak

Nearly half a million people dropped out of the workforce last month, dragging down the share of Americans participating in the labor force by 0.2 percentage

  A bank with deposits of 500 million has 75 million in cash

a bank with deposits of 500 million has 75 million in cash on hand 50 million in deposits with the fed and 80 million

  Conventional cash flow pattern

You are reviewing a profitable investment project that has a conventional cash flow pattern. Suppose that the cash flows for the project, initial outlay, and future after-tax cash flows all double, you would predict that

  Computing portfolio beta

A stock portfolio invested 35% in Stock Q, 25% in Stock R, 30% in Stock S, and 10% in Stock T. The betas for these 4 stocks are .84, 1.17, 1.11 and 1.36 respectively. Compute the portfolio beta?

  What is an ipo

What is an IPO? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, instead of an IPO, more appropriate? Identify the latest 2009 company to go public?

  Normally distributed with a mean

Assume that the heights of men are normally distributed with a mean of 67.3 inches and a standard deviation of 3.5 inches. If 100 men are randomly selected, find the probability that they have a mean height greater than 68.3 inches.

  Contrast the effect on the price of both bonds if yields

on may 30 1999 janice kerr is considering purchasing one of the following newly issued 10-year aaa corporate bonds

  Calculating short-term liquidity with current ratio

Which company has the strongest short-term liquidity as measured by the current ratio? Which company is NOT able to pay off all current liabilities at this time?

  Analyzing the statement of cash flow

How would a manager determine if he/she should purchase a large piece of equipment by analyzing the statement of cash flow?

  Calculate the npv of refunding

The new bonds would be issued when the old bonds are called. Should the bonds be refunded? Calculate the NPV of refunding.

  Main challenges to global financial management

What are the main challenges of global financial management? What is foreign exchange risk management? Is it important for companies going international? Why?

  Financial system and the essential documents

Scenario: You have recently been hired as a manager in the financial department for a local hospital. In the last few weeks, you have noticed a lack of understanding from the staff on the hospital financial system. In order to connect the situatio..

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd