Which of the following scenarios demonstrates the leverage effect on net operating income due to the existence of fixed costs?

Business

1 answer:

morpeh [17]3 years ago

7 0

Answer:

C) A 25% increase in sales resulting in a 30% increase in net operating income.

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Garcia Company issues 8.50%, 15-year bonds with a par value of $390,000 and semiannual interest payments. On the issue date, the

MaRussiya [10]

Answer:

$308,100

Explanation:

Calculation for what are the issuer's cash proceeds from issuance of these bonds

Using this formulaIssuer's cash proceeds from issuance of bonds=Fave value*Implies a selling price percentage

Let plug in the formula

Issuer's cash proceeds from issuance of bonds=$390,000*79/100

Issuer's cash proceeds from issuance of bond=$308,100

Therefore the issuer's cash proceeds from issuance of these bonds will have be $308,100

5 0

3 years ago

The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $60 First

Rus_ich [418]

Answer:

The answer is: the amount of inventory at the end of the year was $1,583 using the average cost method.

Explanation:

The average cost method calculates the cost of inventory by dividing the total costs of goods by the total units.

10 units x $60 = $600
25 units x $65 = $1,300
30 units x $68 = $2,040
15 units x $75 = $1,125

The total cost of inventory is $5,065 ($600 + $1,300 + $2,040 + $1,125)

The total units in inventory are 80 (10 + 25 + 30 +15)

To find the average cost per unit = $5,065 / 80 units = $63.31

If 25 units were left at the end of the year, then the total cost of inventory is $63.31 x 25 = $1,582,81 or $1,583

3 0

3 years ago

Suppose the dollar interest rate and the pound sterling interest rate are the same, 5 percent per year. What is the relation bet

Len [333]

Answer:

1.6

Explanation:

Please see attachment .

Download pdf

8 0

3 years ago

Cassidy is planning to obtain a loan from her bank for $210,000 for a new home. the bank has approved cassidy’s loan at a fixed

Grace [21]

Cassidy's approximate monthly payment stands at $1420. if Cassidy lives planning to obtain a loan from her bank for $210,000 for a new home.

<h3>What is the payment monthly?</h3>

The monthly payment is the quantity paid per month to pay off the loan in the time period of the loan. When a loan is taken out it isn't only the top amount, or the original payment loaned out, that needs to be repaid, but also the good that accumulates.

<h3>What is a loan amortization schedule?</h3>

It is described as the systematic method of representing loan payments according to the time in which the principal amount and interest exist mentioned in a list manner

It is given that:

Cassidy lives planning to obtain a loan from her bank for $210,000 for a new home.
A fixed annual interest rate of 2.7% compounded monthly for 15 years.

The formula is:

$P=F_{P} (i)/1-(1+i)^{-1}$