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djyliett [7]
3 years ago
5

SungSam Enterprises reports the following data: Sales $340,000 Variable costs 180,000 Contribution margin $160,000 Fixed costs 8

0,000 Income from operations $ 80,000 Determine SungSam Enterprises's operating leverage.
Business
1 answer:
grandymaker [24]3 years ago
7 0

Answer:

SungSam Enterprises's operating leverage is 2.0

Explanation:

Operating leverage is a financial efficiency ratio to measure the degree to which a firm or project can increase operating income by increasing revenue.

Operating leverage is calculated by using following formula:

Operating leverage = Contribution margin/Net income

SungSam Enterprises has Contribution margin of $160,000 and Income from operations of $80,000

SungSam Enterprises's operating leverage = $160,000/$80,000 = 2.0

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which one of the following is the primary determinant of a firm's cost of capital? a. cost of debt b. d/e ratio c. tax rate d. u
kolbaska11 [484]

Use of the funds ne of the following is the primary determinant of a firm's cost of capital. (OPTION D).A company's capital structure, or how money is used, will vary depending on the characteristics of its operational industry.

The main determinant of the firm's funds of capital would be its capital structure or method of usage. Firm traits including expansion, size, collateral asset value, profitability, volatility, non-debt tax shields, distinctiveness, industry, etc. are factors that affect capital structure. There may be numerous indicators for each capital structure factor. Tangibility, profitability, sales growth, business risk, and firm size act as moderating variables when determining capital structure in this study.

To learn more about funds, click here.

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4 0
10 months ago
The checkbook of Vance Company had a balance of $2,210.55. The bank statement showed a balance of $4,918.18. The bank collected
Vikentia [17]

Answer:

$4,332.89

Explanation:

The adjusted reconciled checkbook balance will include:

    checkbook balance                                         $2,210.55

    + bank collect note                                         $2,000.00

    - fee for collecting the note                                 ($5.00)

    + earned interest                                                  $42.33

    + difference in recording a check $400 - $300 = $100

   <u> - banking service charge                                   ($14.99)  </u>

    total =                                                              $4,332.89

6 0
3 years ago
Suppose two companies attempt to merge, and they operate in an industry where the postmerger Herfindahl-Hirschman index is 2,900
Allushta [10]

Answer:

Option B -  There are significant diseconomies of scope is the correct answer.

Explanation:

Option  A is, not a condition that could improve the probability that the justice department would approve the merger.

The Herfindahl-Hirschman index is based on a restricted definition of the product market or the impact of foreign competition, the merger might be allowed.

It might also be permitted if one of the firms is in financial trouble, or if significant economies of scale exist in the industry.

Significant diseconomies of scope would only serve to make the merger less likely to be accepted.

Therefore, option B is the correct answer.

6 0
3 years ago
Read 2 more answers
4.
pshichka [43]

the answer to this question is 4.70%

7 0
2 years ago
Magnira Corp. is an apparel company. After a slow start, it saw a steep rise in its clientele and a remarkable increase in its p
Ierofanga [76]

Answer:

The company must create brand recognition and open new branches to access greater number of customers.

Explanation:

Ofcourse having a brand recognition means that the company is oriented towards developing its image that plays a vital role in making choices and this is only possible if its products are widely available in the market by openning new branches and offering other branches to present your products. This will lead to access of product to greater amount of public and greater the number of people will choose Magnira's products.

8 0
2 years ago
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