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Kruka [31]
3 years ago
13

The degree of pretax cash flow operating leverage at Rackit Corporation is 2.7 when it sells 100,000 units of its new tennis rac

ket and its EBITDA is $95,000. Ignoring the effects of taxes, what are the fixed costs for Rackit Corporation?
Business
1 answer:
coldgirl [10]3 years ago
4 0

Answer:

the fixed costs for Rackit Corporation is $161,500.

Explanation:

Cash Flow DOL = 1 + Fixed Cost / EBITDA

2.7 = 1 + Fixed Cost / 95,000

1.7 = Fixed Cost / 95,000

Fixed Cost = $161,500

Therefore, the fixed costs for Rackit Corporation is $161,500.

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An outside supplier has offered to provide Maxter Corp with the 10,000 subcomponents at a $65 per unit price. If Maxter Corp acc
Irina18 [472]

Answer:

Option b ($150,000 decrease) is the correct answer.

Explanation:

Given:

Fixed manufacturing overhead,

= $65

Units,

= 10,000

According to the question,

Current cost is:

= 70\times 10,000

= 700,000 ($)

The expected cost will be:

= Fixed \ manufacturing \ overhead+(Units\times Purchase \ price)

By substituting the values, we get

= (65\times 10000)+200000

= 650000+200000

= 850000

then,

= 850000-700000

= 150000 ($)

Thus the above is the right answer.

3 0
3 years ago
What factors impact the poverty rate?
erastovalidia [21]
Factors that impact the poverty rate: crime depending on the place the person lives in, social inequality, environmental conditions, and the lack of education 
3 0
3 years ago
There is a tenants' meeting in an apartment complex. Who goes to that meeting?
jarptica [38.1K]
The tenants go to the meeting
4 0
3 years ago
Obviously if the model wants to upgrade the kitchen, it should be done by either the landlord or a subcontractor. As he creates
RSB [31]

Answer:

a. x3+x4<=1

Explanation:

We need a multiple choice constraint. Constraint x3+x4 <= 1 states that only one of the 2 options of landlord or contractor working on kitchen tiles can be used. (Assuming x3, x4 are binary variables)

Hence if x3 = 1, x4 is 0, and if x4=1, x3 becomes 0. Please note, there is no constraint in question specifying that kitchen tile has to be done. Hence, both x3 and x4 can be 0 depending on cost optimization, and x3+x4<=1 will still hold correct.

7 0
3 years ago
For a company using target costing, market price minus profit equals target price.
Pachacha [2.7K]

Answer:

For a company using target costing, market price minus profit equals target cost and not target price.

The correct answer is False

Explanation:

Target cost is the excess of market price over target profit margin. In target costing, the company does not fix the selling price because selling price is determined by the market.

6 0
3 years ago
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