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1 year ago

leverage is a financial technique used to determine to what extent fixed costs are used relative to variable costs.

1 answer:

Colt1911 [192]1 year ago

8 0

Operating leverage is highest in groups that have a high share of constant working fees when it comes to variable operating costs.

Operating leverage is a value-accounting system that measures the diploma every day which a company or venture can increase working earnings by means of increasing sales.

Operating cost are the continuing expenses incurred from the everyday of walking a enterprise. working expenses encompass each expenses of goods bought and different running costs.

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Mervon Company has two operating departments: Mixing and Bottling. Mixing occupies 26,220 square feet. Bottling occupies 17,480

nordsb [41]

Answer and Explanation:

Given:

Mixing department occupies = 26,220 square feet

Bottling department occupies = 17,480 square feet.

Total maintenance costs = $204,000

Computation of total area:

Total area = (26,220 + 17,480) square feet

Total area = 43,700 square feet

Computation of mixing department maintenance costs:

Mixing department maintenance costs = Total maintenance costs(Mixing department area / Total area)

Mixing department maintenance costs = $204,000(26,220 / 43,700)

Mixing department maintenance costs = $204,000(0.6)

Mixing department maintenance costs = $122,400

Computation of bottling department maintenance costs:

Bottling department maintenance costs = Total maintenance costs(Bottling department area / Total area)

Bottling department maintenance costs = $204,000(17,480 / 43,700)

Bottling department maintenance costs = $204,000(0.4)

Bottling department maintenance costs = $81,600

5 0

3 years ago

Assuming a current ratio of 1.00 and an acid test ratio of .75 how will the purcahse inventory with cash affect each ratio

MAVERICK [17]

The current ratio will remain the same as 1 only

The acid-test ratio will decrease.

The current ratio will stay the same because there won't be a change in current liabilities, and the change in current assets won't have any net consequences because the asset will grow due to an increase in inventory, but it will also decrease by the same amount due to a decrease in cash, so the current ratio will stay the same.

The acid-test ratio will decline since the numerator will shrink owing to a cash shortage, and the growth in inventory won't be taken into account because current assets aren't included in this ratio.

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8 0

1 year ago

A firm reports a net margin of 5.00%. The firm has 1,456,800.00 million shares outstanding. The firm has invested in a new produ

n200080 [17]

Answer:

To find Earning per share, we can find this by the following formula:

Increase in Earnings Per Share = Net profit of new products / Number of shares

and

Net Profit of new products = 5% * $4,898,300 = $244,915

Increase in Earnings Per Share = ($244,915) / 1,456,800 = 16.81%

8 0

3 years ago

Most CLEP exams correspond to blank college courses

Kamila [148]

True Because they have preperations for your tests

8 0

3 years ago

Your friend is going to purchase a car and will finance it. she is borrowing $20,000 at a monthly rate of 0.50 nd will pay it of

stiv31 [10]

The monthly payment is $386.67.

<h3>What is the monthly interest rate?</h3>

A monthly interest rate is simply the amount of interest charged in one month.
This does not include any other fees associated with the loan, and it does not indicate how expensive a loan is.
APR, on the other hand, is the annual percentage rate charged on a loan for a year.

So,

PV = 20,000, I/y = 0.50, n = 12 × 5, FV = 0
CPT PMT which equals $386.67

Therefore, the monthly payment is $386.67.

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6 0

1 year ago