Question

A firm has total assets of $310,100 and net fixed assets of $168,500. the average daily operating costs are $2,980. what is the value of the interval measure?

Answer 1

To calculate the value of the interval measure:
Interval measure = (total assets - net fixed assets)/daily operating costs

Total assets = $310,100
Net fixed assets = $168,500
Daily operating costs = $2,980

Interval measure = ($310,100 - $168,500)/$2,980
Interval measure = $141,600/$2,980
Interval measure = 47.52 days