Degree of operating leverage for the level of production

Assignment Help Financial Management
Reference no: EM13726132

The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $39. The variable cost per unit is $20. Poseidon swim has average fixed costs per year of $57,122.

Determine the degree of operating leverage for the level of production and sales 4,333 units

Reference no: EM13726132

Questions Cloud

What is the present value of this growing perpetuity : You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.02 annually. If you use ..
What is the future value of his investment cash flows : Chuck Brown will receive from his investment cash flows of $3,155, $3,480, and $3,840 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..
What will be your monthly payment : You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment?
Justice department stance on the issue. : Do not be unduly influenced by the Justice Department's stance on the issue. Use your own analysis to reach a conclusion
Degree of operating leverage for the level of production : The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $39. The variable cost per unit is $20. Poseidon swim has average fixed costs per year of $57,122. Determine the degree of operating leverage fo..
How do wyndham diverse brands contribute to customer : Read Case 10: Wyndham Worldwide Adopts a Stakeholder Orientation Marketing Strategy found in textbook Appendix and answer the following questions. How do Wyndham's diverse brands contribute to customer satisfaction and marketing performance
Write an essay two pages about gustave whitehead : We have to write an essay 2 pages about Gustave Whitehead and the Wright brothers and we have to write an opinion on who do we think flew the first plane.
What is the projects payback period : A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's IRR? A project has an initial cost of $59,675, expected net cash inflows of $12,000 per year for ..
Summurize case study-public relations practices : May you help me to summurize one case study in this book: Public Relations Practices, 8th ed, by Center, Jackson, Smith, and Stransberry

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the percent change in gross margin

Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction companies, often ..

  Corporate bond has an annual coupon

A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is INCORRECT?

  In this assignment you will conduct an evaluation of a

in this assignment you will conduct an evaluation of a company based on its annual report. this assignment will provide

  Beta and cost of capital

Company "A" has a beta of 1.5 and a cost of capital of 25%. Company "B" has a beta of 0.8 and a cost of capital of 15%. When evaluated at a rate of 15%, the project shows an NPV of +$5 million, and when evaluated at a rate of 25%, the project shows a..

  Calculate the firms earnings per share

Calculate the firms earnings per share (EPS) for each year, recognising that the number of shares issued has remained unchanged since the firm's inception. Comment on the EPS performance in view of your response to question 1a.

  Calculate the total finance charge and annual allocation

Explain why Believer believes this lease should be categorised as a finance lease. You should refer to relevant international accounting standards to justify your answer.

  The operating cost of a new machine

The operating cost of a new machine is $500 for the first year. Starting the second year, the operating cost increases by $200 per year for the next 10 years. Calculate the equivalent annual operating cost of the machine. What will be the present and..

  Advantages of the corporate organizational structure

What inherent characteristic of corporations creates the need for a system of checks on manager behavior and what are some examples of agency problems - what are the advantages and disadvantages of the corporate organizational structure?

  Suppose that two-year interest rates are 52 in the united

suppose that two-year interest rates are 5.2 in the united states and 1.0 in japan. the spot exchange rate is 120.22.

  What is the expected market value of a bond

What is the expected market value of a bond that has 5 years to maturity, a yield of 6.5% a coupon rate of 7.5%, a cost basis of 10354.18 and a fair market value of 10,000? The bond pays interest semi-annually.

  What actions can it take to be in compliance

If the Friendly National Bank experiences a required reserves deficit, what actions can it take to be in compliance with the existing required reserves ratio?

  Cost of preferred stock including flotation

Trivoli Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $99.50; but flotation costs will be 5% of the market price, so the net price will be $94.53 per share. What is the cost of the pre..

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