The Grelle Company’s total variable costs increased by 30% in June. You have been asked what could have caused this increase. Wh
1 answer:
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Answer:
Change in Operating Cash Flow = 13.79 %
Explanation:
given data
output level = 58,000 units
degree of operating leverage = 1.6
output rises = 63,000 units
solution
we get here percentage change in operating cash flow for that
Percentage Change in Output we get
Percentage Change in Output = ( output rises - output level ) ÷ output level .........1
Percentage Change in Output =
Percentage Change in Output = 0.08620689655
so here Change in Operating Cash Flow will be as
Change in Operating Cash Flow = Percentage Change in Output × degree of operating leverage ............2
Change in Operating Cash Flow = 0.08620689655 × 1.6
Change in Operating Cash Flow = 13.79 %
Answer:
I will need to invest 64,669.73 dollars now.
Explanation:
We will calcualte the future value of the cabin considering the inflation:
Principal 150,000.00
time 15 years
inflation 0.04000
Amount 270,141.53
Then we calculate the present value of the lump sum at 15 years discounted at 10% which is the yield of the funds
Maturity 270,141.53
time 15 years
rate 0.10
PV 64,669.73
we would need to deposit 64,669.73 today to get enough cash to purchase the bcabin in 15 years.