Answer:
$11,760
Explanation:
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income/profit.
Without the new offer
Profit = 5000($29 - $15) - $20,900
= $70,000 - $20,900
= $49,100
For the new order a variable selling cost of $2 per unit would be eliminated, the contribution of the order will be
= 1680($20 - $15 + $2)
= 1680 * $7
= $11,760
This is the differential effect on profit.
Answer:
B. 16.53%
Explanation:
The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.
the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1
r = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%
Answer: Schlictor's operating leverage when 2000 units are sold is 3.
The degree of operating leverage is used to calculate the change in operating income with respect to a percentage change in sales.
We can calculate operating leverage of a firm with the help of the following formula:
Substituting the values from the question we get
![Degree of operating leverage = \frac{(50 * 2000) - (50*0.40*2000)}{[50*2000] - [(50*0.4*2000) + 40000]}](https://tex.z-dn.net/?f=Degree%20of%20operating%20leverage%20%3D%20%5Cfrac%7B%2850%20%2A%202000%29%20-%20%2850%2A0.40%2A2000%29%7D%7B%5B50%2A2000%5D%20-%20%5B%2850%2A0.4%2A2000%29%20%2B%2040000%5D%7D)
![Degree of operating leverage = \frac{100000 - 40000}{[100000] - [(40000) + 40000]}](https://tex.z-dn.net/?f=Degree%20of%20operating%20leverage%20%3D%20%5Cfrac%7B100000%20-%2040000%7D%7B%5B100000%5D%20-%20%5B%2840000%29%20%2B%2040000%5D%7D)
