The company's degree of operating leverage is 1.29.
The degree of operating leverage(DOL) quantifies how much a company's operating income fluctuates in response to a change in sales.
The DOL ratio helps analysts determine the impact of changes in sales on company earnings.
A company with high operating leverage has a high proportion of fixed costs, which means that a large increase in sales can result in large changes in profits.
Using the formula for degree of operating leverage we get:
Degree of Operating Leverage = Contribution Margin/Operating Income
= $85200/$66200
= 1.29
Hence, The company's degree of operating leverage is 1.29.
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Answer:
Standard deviation of Tc is 1600
Explanation:
See attached file
Answer:
Therefore, the UK pound is at a discount against the U.S. dollar, because it is worth less in the One-month forward market than in the spot market.
Explanation:
Given:
Selling price = $1.5137
Spot price = $1.5139
We'll calculate how much pound is worth in the forward market.
We'll use the formula:
(selling - spot price )/spot price * 12/months of contract


= -0.0015853
Therefore, the UK pound is at a discount against the U.S. dollar, because it is worth less in the One-month forward market than in the spot market.
Answer:
Avon Products Inc.
All Amounts in $ million
Gross Trade Accounts Receivable at the end of the year are $ 443 million + $ 86.7 million = $ 529.7 million
The amount of Bad Debts provided for the year is $ 144.1 million.
The amount of bad debts written off during the year is $ 160.2 million.
The amount of cash collected from the Customers
Opening Gross Accounts Receivable = $ 622.50 million
Sales for the year 2015 = $ 6,076.50 million
Closing Gross Accounts Receivable = $ 529.70 million
Net Collections from Customers = $ 6,169.30 million
The common errors that leads to unbalanced account and are the easiest to resolve includes the <em>error of </em><em>Omission, Commission</em>. <em>Original Entry and Duplication</em><em>.</em>
In accounting, there are different type of error that could result to the unbalanced account, that is, leaving the Trial balance or Balance sheet unbalanced.
Generally, the recognized type of errors in accounting includes:
- <em>Error of Original Entry</em>
- <em>Error of Duplication</em>
- <em>Error of Omission</em>
- <em>Error of Entry Reversal</em>
- <em>Error of Principle </em>
- <em>Error of Commission</em>
- <em>Transposition Errors</em>
- <em>Rounding Errors </em><em>etc</em>
In conclusion, the common errors that leads to unbalanced account and are the easiest to resolve includes the <em>error of </em><em>Omission, Commission</em>. <em>Original Entry and Duplication</em><em> </em>because they are easy to correct.
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