What is the effect on break-even level of revenues

Assignment Help Financial Management
Reference no: EM13730529

What is the effect on break-even level of revenues for each dollar of increase in fixed costs plus depreciation for a firm with 70% variable costs?

An increase of $0.30

An increase of $1.00

An increase of $1.43

An increase of $3.33

Reference no: EM13730529

Questions Cloud

Detailed description of the visual pictures : Design a political commercial. You will need to have a transcript of the text and a clear detailed description of the visual pictures to be used in your commercial. Your commercial should take a strong position and discuss the advantages and disad..
Calculate the firms net income : Garden Pro Corporation has sales of 4,279,540; income tax of $509,967; the selling, general, and admin expenses of $284,673; depreciation of $340,470; cost of goods sold of $,619,760; and interest expense of $180,429. Calculate the firm’s net income.
What manner did daniel shay impact drafting of constitution : In what manner did Daniel Shay impact the drafting of the Constitution? View Shay's Rebellion through the eyes of Hamilton and Jefferson to determine your response.
Different classifications of accounts : What does the term account mean? What are the different classifications of accounts? How do the rules for debits and credits impact accounts? Please provide an example of how debits and credits impact accounts.
What is the effect on break-even level of revenues : What is the effect on break-even level of revenues for each dollar of increase in fixed costs plus depreciation for a firm with 70% variable costs?
Explain project life-cycle management : The final six to eight page paper must demonstrate understanding of new learning in the field of project management. It is mandatory to have five sources from the internet or online library to support your views
What is the cost of equity : Suppose you borrow $50000 when financing a coffee shop which is valued at $75000. You expect to generate a cash flow of $84000 if demand is as expected. The cost of debt rate.3) What is the cost of equity?
Demonstrate your knowledge of child development : Demonstrate your knowledge of child development by analyzing the relationship between attachment style, as outlined by Mary Ainsworth, and any one of the other topics covered in the discussions or journals in this course.
Describes how the modern era has affected cultural exchange : which of the following describes how the modern era has affected cultural exchange?

Reviews

Write a Review

Financial Management Questions & Answers

  Firms cost of preferred stock financing

The preferred stock of Gator Industries sells for $35.55 and pays $2.74 per year in dividends. What is the cost of preferred stock financing? If Gator were to issue 529,000 more preferred shares just like the ones it currently has outstanding, it cou..

  The yield to maturity on a bond is the rate of return

The yield to maturity on a bond is the rate of return that equates to the present value of the bond's future cash flows with the bonds

  What is the expected return on a portfolio

What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of .5, what are the portfolio weights? If a portfolio of the two assets has an expected return of 8 percent, what is it..

  State what will be the dollar value of the management team''s

What will be the dollar value of the management team's original $2 million equity investment at the time of the liquidity event?

  What is the amount of the net fixed assets

ET Industries has net working capital of $12,700, current assets of $38,200, equity of $53,400, and long-term debt of $11,600. What is the amount of the net fixed assets?

  Calculate debt ratio and equity ratio

Binomial Tree Farm’s financing includes $6.7 million of bank loans. Its common equity is shown in Binomial’s Annual Report at $6.84 million. It has 500,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16.3 per sha..

  What is the minimum expected annual return for stock

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

  1 the tiger company has an opportunity to make an

1 the tiger company has an opportunity to make an investment with the following estimated after tax cash flows-year

  What is the after-tax cost of debt

Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The tax rate is 40%. If the flotation cost is 3% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield..

  What percent change was this from the re-evaluation rate

The Turkish Lira (TL) was officially devalued by the Turkish government in February 2001 during a severe political and economic crisis. The Turkish government announced on February 21 that the lira would be devalued by 20%. The spot exchange rate on ..

  Discuss the operation of monetary policy in the us

Define monetary policy, and discuss the operation of monetary policy in the United States post-GFC.

  Earn an annual interest rate

If you have $675,000 saved for retirement how many years will it last if you earn an annual interest rate of 7% and withdraw $46,000 at the beginning of each year? Assume you won $60 million in the lottery. You were given the option of receiving twen..

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