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Fudgin [204]
3 years ago
14

Breakeven and leverage wingler communications corporation (wcc) produces premium stereo headphones that sell for $28 80 per set,

and this year's sales are expected to be 450,000 units. variable production costs for the expected sales under present production methods are estimated at $10,200,000, and fixed production (operating) costs at present are
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
8 0
<span>Answer: At what unit sales level would WCC have the same EPS, assuming it undertakes the investment and finances it with debt or with stock? {Hint: V = variable cost per unit = $8,160,000/440,000, and EPS = [(PQ - VQ - F - I)(1 - T)]/N. Set EPSStock = EPSDebt and solve for Q.} Round your answer to the nearest whole. units At what unit sales level would EPS = 0 under the three production/financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? (Hint: Note that VOld = $10,200,000/440,000, and use the hints for Part b, setting the EPS equation equal to zero.) Round your answers to the nearest whole. Old plan units New plan with debt financing units New plan with stock financing units On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume here that there is a fairly high probability of sales falling as low as 250,000 units, and determine EPSDebt and EPSStock at that sales level to help assess the riskiness of the two financing plans. Round your answers to two decimal places. EPSDebt = $ EPSStock = $</span>
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Suppose the government introduces a new incentive for individuals to save money for retirement. How would this affect the market
masya89 [10]

The supply of loanable funds would increase and interest rates would fall.

For instance, they may lower or do away with taxes on savings interest. More people would be motivated to cut back on their present levels of consumption and increase their savings as a result of the enhanced tax benefits associated with saving.

This will result in a rise in the amount of loanable money available (shift to the right.) The interest rate at equilibrium will decrease. People and businesses will have more motivation to borrow as the interest rate declines, pushing up the demand curve and increasing the equilibrium amount of borrowing and lending in the market.

Learn more about interest rates here:

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5 0
2 years ago
In the management assistance area, the Small Business Administration (SBA) provides all of the following EXCEPT: Group of answer
polet [3.4K]

Answer: Free college credit courses in management

Explanation:

The Small Business Administration (SBA) is a Federal government agency that aims to help small businesses and entrepreneurs by providing them with resources to make them grow.

They have toll-free phone numbers that entrepreneurs and small businesses can call for advice, they have trading training programs and business development offices who offer advice and counsel on business techniques and they even free publications on business topics.

They do not however offer free college credit courses in management.

4 0
3 years ago
When asked to memorize the 15 letters, c i a c b s a b c f b i i r s mary reorganized them into cia, cbs, abc, fbi, and irs. mar
11Alexandr11 [23.1K]
The appropriate response is chunking. Chunking alludes to an approach for making more proficient utilization of here and now memory by gathering data. Piecing separates long strings of data into units or lumps. The subsequent pieces are less demanding to focus on memory than a more extended continuous string of data.
8 0
3 years ago
A customer in a coffee shop purchases a blend of two coffees: kenyan, costing $3.50 a pound, and sri lankan, costing $5.60 a pou
Rom4ik [11]
We have to make a system of equations:
x + y = 7;  where x stays for pounds of Kenyan coffee, and y stays for pounds of Sri Lankan coffee. And: 3.50 * x + 5.60 * y = 33.95 ( total cost ).
From the 1st equation: x = 7 - y. We have to substitute it into the 2nd equation:
3.50 * ( 7 - y ) + 5.60 * y = 33.95
24.50 - 3.50 y + 5.60 y = 33.95
5.60 y - 3.50 y = 33.95 - 24.50
2.10 y = 9.45
y = 9.45 : 2.10
y = 4.5 lb;  x = 7 - 4.5 = 2.5 lb.
Answer: 2.5 lb of Kenyan coffee and 4.5 lb of Sri Lankan.
7 0
3 years ago
When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts
PSYCHO15rus [73]

Answer:

True

Explanation:

statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.

The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.

7 0
3 years ago
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