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Elina [12.6K]
3 years ago
15

Carver Packing Company reports total contribution margin of $72,000 and pretax net income of $24,000 for the current month. In t

he next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:
A. 4.0 and 32%

B. 0.33 and 8%

C. 0.33 and 2.7%

D. 3.0 and 8%

E. 3.0 and 24%
Business
1 answer:
vlada-n [284]3 years ago
7 0

Answer:

The degree of operating leverage and the expected percent change in income, respectively, are 3.0 and 24%. The right answer is E.

Explanation:

In order to calculate the degree of operating leverage we would have to use the following formula:

opearting leverage=<u>contribution margin</u>

                                  operating income

operating leverage=<u>$72,000</u>

                                  $24,000

operating leverage=3.0

In order to calculate the degree of expected percent change in income we would have to use the following formula:

percent change in income=percent change in sales×operating leverage

percent change in income=8%×3

percent change in income=24%

The degree of operating leverage and the expected percent change in income, respectively, are 3.0 and 24%

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$400,000 equity will be the coverage provided for the account.

<h3>What is a joint account?</h3>

A joint account is just another saving account, but the difference is that it is shared between two people, i.e, two people are the owner of that account this is generally shared between two partners or a spouse.  

The maximum bandwidth for a joint account is $500,000; but, a margin account only covers the equity, thus the debit balance is deducted from the market value. from deducting the market value of $1 million from the debit balance of $600,00  to leave $400,000 equity.

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2 years ago
What is the cost when someone borrows money from someone else?.
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The cost when someone borrows money from someone else is known as interest.

<h3>What is interest?</h3>

Interest rate is the cost of borrowing. It is the amount the borrower pays the lender for use of their funds. It is usually a function of the amount borrowed, length of the loan and the interest rate.

For example, if a person borrows $1000 for 1 year at an interest rate of 10, the interest that would be paid is: $1000 x 0.1 = $100.

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Answer:

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Explanation:

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12,000 x 25% = 3,000

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6 0
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Add: Freight                               $3,800

Add: Installation&Testing          <u>$5,400 </u>

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6 0
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In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depos
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Answer:

The correct answer is option D.

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During the financial crisis, there was a sense of panic. The regulators were concerned that depositors would expect their banks to crash and would fear that they may lose their money. The regulators expect the depositors to pull money back from their banks. The money supply will get reduced further. This will further reduce the money with banks. This could lead to even healthy banks to fail.

Raising the insurance limit would reassure depositors that their money was safe in banks and prevent a bank panic. This will further help to stabilize the financial system.

4 0
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