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klio [65]
3 years ago
6

You are considering a project and are concerned about the reliability of the cash flow forecasts. To reduce any potentially harm

ful results from accepting this project, you should consider:
A. Lowering the degree of operating leverage.
B. Lowering the contribution margin per unit.
C. Increasing the initial cash outlay.
D. Increasing the fixed costs per unit.
E. Lowering the operating cash flow.
Business
1 answer:
Nuetrik [128]3 years ago
8 0

Answer: A. Lowering the degree of operating leverage.

Explanation:

The degree of operating leverage measure how much the earnings from a project will change as a result of sales.

If you are worried about the cash flow forecasts, it would be best to lower the operating leverage so as to reduce the forecasting error associated with the project. If the operating leverage is high then a small change in sales could impact income in a relatively huge way. By reducing the DOL, the cashflow from the project is easier to forecast and therefore more reliable.

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Persuasive Personality

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3 years ago
A privately owned summer camp for youngsters has the following data for a 12-week session: Charge per camper Fixed costs Variabl
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Answer:

Results are below.

Explanation:

Giving the following information:

Fixed costs= $192,000

Unitary variable cost= $320 per week

Selling price per unit= $480 per week

<u>To calculate the total cost, we need to use the following formula:</u>

Total cost= fixed costs + unitary variable cost*number of units

Total cost= 192,000 + 320*number of weeks

<u>Now, the total revenue:</u>

Total revenue= selling price per week*Number of weeks

Total revenue= 480*x

<u>Finally, the break-even point in units:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 192,000 / (480 - 320)

Break-even point in units= 1,200 campers

3 0
3 years ago
You just heard that a​ well-known manufacturer in a different industry segment is going to enter your market with a product that
raketka [301]
<span>You should make sure that everything on your side is in place to go against the new competition. You should be on the same page as your supplier to make sure your supplies are sent on time and complete. You should make sure your consumers are satisfied to prevent them from going to the new competition. Overall, your goal should be to maintain your consumers and suppliers.</span>
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3 years ago
Seth is a competitive body builder. He says he has ti have his 12 oz package of protein to " feed his muscles" every day. On the
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Answer:

1. It is perfectly inelastic

Explanation:

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Suppose your roommate just invented an electronic pencil that senses when a word being written is misspelled, beeps, and shows t
irakobra [83]

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Learn more about electronic pencil from

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