The degree of operating leverage

Assignment Help Financial Management
Reference no: EM13813576

Kendall Company has sales of 1,500 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $53,000, the degree of operating leverage is:

2.87

9.00

6.30

2.70

Reference no: EM13813576

Questions Cloud

Goals of historical terrorist organizations : Do you think that the goals of historical terrorist organizations were any different from those of the terrorist organizations of today - did the terrorists succeed at achieving their goals? Why or why not?
Contribution margin ratio-net operating income : Maack Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $51,500. If the company's sales for a month are $314,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses ..
Could nation-states of europe have expanded into the america : Could the nation-states of Europe have expanded into the Americas without the policies of slavery and warfare against the Native American societies?
What is the companys unit contribution margin : A cement manufacturer has supplied the following data: What is the company's unit contribution margin?
The degree of operating leverage : Kendall Company has sales of 1,500 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses are $53,000, the degree of operating leverage is:
Capital balance after closing income summary to capital : Deng and Dang are partners who share income in the ratio of 3:2. Their capital balances are $48,122 and $62,776 respectively. Income Summary has a credit balance of $44,798. What is Deng's capital balance after closing Income Summary to Capital?
Future of digital crimes and digital terrorism : Assignment: The Future of Digital Crimes and Digital Terrorism, In the United States, a number of law enforcement agencies, including the Secret Service, the Federal Bureau of Investigation (FBI), and the Department of Homeland Security among othe..
Break-even point for the entire company is closest : Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $39,000 and variable expenses of $11,580. Product P42T had sales of $52,000 and variable expenses of $16,630. The fixed expenses of the entire com..
Techniques and tools for managing the data : Techniques and Tools for Managing the Data

Reviews

Write a Review

Financial Management Questions & Answers

  Products supplied and marketed responsibly

Four years ago, E retired as Financial Director of an airport company to become an ethical entrepreneur. He now employs ten people producing natural spring water and selling it in both still and sparkling varieties in individually sized plastic bottl..

  What amount will the following investment accumulate

To what amount will the following investment accumulate? $26,580, invested today for 3 years at 18.77 percent, compounded monthly.

  Assume that the current yield to maturity on the bond

Compute the price of a $5,000 par value bond with a coupon rate of 7.5% (semi-annual payments) and 19 years remaining to maturity. Assume that the current yield to maturity on the bond is 8.60%.Round all dollar answers to 2 decimal places

  Semi-annual coupon bond with coupon rate

Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of 17 years. Seven years from now, the YTM on your bond is expected to decline by 2%, and you plan to sell. What is the holdi..

  Explain level of incremental sales is associated with pizza

Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza?

  Assume that the risk-free rate is a constant

If the market risk premium increases by 1%, then the required return will increase for stocks that have a beta greater than 1.0, but it will decrease for stocks that have a beta less than 1.0. The effect of a change in the market risk premium depends..

  What are the financial statements presented in the report

What are the financial statements presented in the report and how many disclosures are in the report and what was the net income of the company? Explain the revenues and the expenses components.

  Firms taxable income or earnings before taxes

Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding th..

  As a bond approaches its maturity date

As a bond approaches its maturity date, its price approaches

  What is the present value of the following future amount

What is the present value of the following future amount? $340,589 to be received 15 years from now, discounted back to the present at 3 percent, compounded annually. Round to 2 decimals

  Firm recently purchased a new facility costing

A firm recently purchased a new facility costing $984 thousand. The firm financed this purchase with an amortized loan at an interest rate of 8.8 percent APR, with monthly payments of $23.9 thousand. How long will it take to pay off this loan?

  This case is intended to be an introduction to the various

this case is intended to be an introduction to the various methods used in capital budgeting and looks at some of the

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