Answer:
1. Measure of the percentage change in earnings before interest and tax or operating cash flow:
B) Degree of operating leverage
2. P/E Ratio of 10 indicates that:
c. The value of the stock will be 10 times the initial investment at the time of maturity.
Explanation:
Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue. With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income. There are many ways to measure a company's degree of operating leverage. One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.
Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share. It is used to evaluate the value of the company's stock. It points out whether the company's stock is undervalued, overvalued, or correctly valued.
Answer:
Reserve requirements – Reserve requirement increases to decrease the money supply or vice versa.
Open-market activities – the Fed sell the securities to reduce money supply or purchase it to increase the money supply.
Discount rates – Decrease the discount rate to increase the money supply or vice versa.
Explanation:
The Federal Reserve increases or decreases the money supply by using various tools. So in the case of the reserve requirement, the bank increases the percentage of reserve requirement if the Fed wants to decrease the money supply and to increase the money supply it reduces the reserve requirements. In the case of open market operations, the Fed sells securities and bonds in the market in order to reduce the supply of money or to decrease the supply of money it buys the securities from the market.
In the case of a discount rate, the Fed reduces the discount rate to increase the money supply because reducing the discount rate will induce the banks to give more loans. But to decrease the money supply, the Fed increases the discount rate because an increase in the discount rate reduces the ability of banks to give loans.
<span>This visit to the proctor by Hale occurs after the events that transpired in the town of Salem. Hale feels immense guilt for allowing events to get out of hand in Salem. It is this conflict which gives him a more demure outward persona.</span>
Answer:
TRUE
Explanation:
Training is the hidden cost associated with ERP implementations that is considered the most under-estimated because at the initial stage of Enterprise resource planning software purchase, only the cost of purchase and installation is considered. However the software cannot be used without training the users on how to use the software.
Such training costs are sometimes as significant as 25% or more of the cost of the software and these costs are not included in the list price of the purchase of the ERP. Furthermore even when the training costs are estimated, they are often under-estimated as the number of users may increase with time as the organisation grows.
Answer:
1. 1.875 hours
2. $20.25
3. $37.97
Explanation:
The computation is shown below:
1. For Standard direct labor hours per oil change, it is
= (Actual time spent on the oil change) + (Setup and downtime + Cleanup and rest periods) × Actual time spent on the oil change
= 1.25 hours + (22% + 28%) × 1.25 hours
= 1.25 hours + 0.625 hours
= 1.875 hours
2. Standard direct labor hourly rate, it is
= (Hourly wage rate) + (Payroll taxes + Fringe Benefits) × hourly wage rate
= $15 + (10% + 25%) × $15
= $15 + $5.25
= $20.25
3. And, the standard direct labor cost per change is
= Standard direct labor hours per oil change × Standard direct labor hourly rate
= 1.875 hours × $20.25
= $37.97
We simply applied the above formulas for each one part
