Answer:
A) decrease the degree of operating leverage
Explanation:
The contribution margin is
sales - variable:
(sales + 2) - (variable + 2) = sales - variable
no change
so B is FALSE
as the contribution margin ratio is:
(sales - variable ) / sales
this increase will impact the contribution margin ratio.
(sales + 2 - (variable +2))/ (sales + 2)
(sales - variable) / (sales + 2)
the CMR will decrease.
so D is FALSE
the break-even on sales will increase as the CMR decreases
more units are needed to fullfil the fixed cost
so C is FALSE
A) decrease the degree of operating leverage
ΔEBIT / Δrevenue
sales increase and the variable cost increases
a change in the sales revenue will not be as efficient as it was before the degree of leverage will decrease.
<span>The theory of social Darwinism was used to promote the theory that capitalism would offer all the people of the nation an opportunity for great wealth. In this case, the answer would be Was used to justify the social consequences of industrial capitalism.</span>
Answer:
13%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-74,361.78
Cash flow in year 1 - 4 = 25,000
IRR = 13%
Answer:
$77,760
Explanation:
After adjustment items of expenses will be deducted from the Net income, and items of income will be added to the net income.
Item of expenses = unpaid salary + Prepaid insurance (Expired)
Item of income = Interest earned + revenue
Net income after deduction = 77,600 - 795 - 555 + 755 + 755
Net income after deduction = $77,760
Excellent Yachting will pay $519,799.59.
<h3>What will be the calculation of resent value of a lump sum?</h3>
The calculation of the present value of a lump sum for each cashflow considering the 14.5% discount rate would be as follow:
PV=nominal value/(1+i)n
rate: 0.145
Year I, 218,000/(1+0.145)1 = PV
= 190,393.0131
Year II, 224,000/(1+0.145)² = PV
= 170,858.6793
Year III, 238,000/(1+0.145)³ = PV
= 158,547.9011
By adding each PV value together, we will get 190,393.0131+170,858.6793+158,547.9011 = $519,799.59
Learn more about the PV here:-
brainly.com/question/15432294
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