What types of investments are securitys

Bristo Corporation has sales of 2,080 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expe

Mumz [18]

Answer:

Degree of operating leverage = 7.8

Explanation:

given data

sales = 2,080 units

per unit price = $50

Variable expenses = 25%

total fixed expenses = $68,000

solution

we get here Degree of operating leverage that is express as

Degree of operating leverage = Sales - variable cost ÷ (sales - variable cost - fixed cost) .......................1

here

Sales = 2080 × 50 = 104000

and

Variable cost = 104000 × 25% = 26000

so now put value in equation 1 we get

Degree of operating leverage = $\frac{104000-26000}{104000-26000-68000}$

Degree of operating leverage = 7.8

3 0

3 years ago

You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c

ExtremeBDS [4]

Answer:

c. 15.8%

Explanation:

The cost of equity is the WACC (weighted average cost of equity)

WACC formula = wE*rE + wD*rD(1-tax) , whereby

wE = weight of equity = 65%

rE = cost of equity = 20%

wD = weight of debt=35%

rD(1-tax ) = after tax cost of debt =8%

WACC = (0.65 *0.20) + (0.35*0.08)

= 0.13 + 0.028

= 0.158 or 15.8%

Therefore, the overall cost of capital is 15.8%

8 0

3 years ago

Why are labor unions able to negotiate effectively with companies where individual workers can't?

ra1l [238]

Answer:

Labor unions can use the power of collective bargaining and strikes to make management listen. Instead of using the power of one, easily replaced worker, the union uses the power of all workers for leverage.

Explanation:

5 0

2 years ago

Read 2 more answers

BR Company has a contribution margin of 9%. Sales are $477,000, net operating income is $42,930, and average operating assets ar

ser-zykov [4K]

Answer:

32.03%

Explanation:

Data provided as per the question

Net operating income = $42,930

Average operating assets = $134,000

The computation of return on investment (ROI) is shown below:-

Return on investment =net operating income ÷ average operating assets

$42,930 ÷ $134,000

= 32.03%

Therefore for computing the return on investment we simply divide average operating assets by net operating income.

5 0

3 years ago

Read 2 more answers

Exercise 18-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $31

photoshop1234 [79]

Answer:

The unit sales to earn the target income is 9,000 units

Explanation:

Annual income=Total sales-total expenses

where;

Annual income=$1,550,000

Total sales=Cost per unit sales×number of units sold (n)=(310×n)=310 n

Total expenses=Variable cost+annual fixed cost

Total expenses=(248×n)+992,000

Total expenses=248 n+992,000

Replacing;

1,550,000=310 n-(248 n+992,000)

1,550,000=310 n-248 n-992,000

310 n-248 n=1,550,000-992,000

62 n=558,000

n=558,000/62

n=$9,000

The unit sales to earn the target income is 9,000 units

3 0

3 years ago