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Lapatulllka [165]
3 years ago
12

What is operating leverage, and how does it affect a firm's business risk?a. Show the operating break-even point if a company ha

s fixed costs of $22,000, a sales price of $36, and variables costs of $14.b. What is the break-even quantity if the price is decreased to $30?c. What is the break-even point if the price is decreased to $30 and costs increase to $19?
Business
1 answer:
raketka [301]3 years ago
6 0

Answer:

$10

Explanation:

cause 1f

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Data pertaining to a company's joint production for the current period follows: L M Quantities produced 200 lbs. 150 lbs. Market
Lelechka [254]

Answer:

Joint cost value based = $396

Explanation:

Given:

Company                            L                M

Quantities produced     200 lbs       150 lbs

Market value                  $8/lb            $16/lb

Total joint cost = $660

Computation:

Market value of L = 200 lbs × $8/lbs

Market value of L = $1,600

Market value of M = 150 lbs × $16/lbs

Market value of M = $2,400

Total market value = Market value of L + Market value of M

Total market value = $1,600 + $2,400

Total market value = $4,000

Joint cost value based = $660 × ($2,400 / $4,000)

Joint cost value based = $396

4 0
3 years ago
ABC Company sells 300 machines for $5000 each in the current year. Each machine carries a one-year warranty. Experience from the
const2013 [10]

Answer:

the journal entry to record warranty expense is:

Dr Warranty expense 30,000

    Cr Warranty liability 30,000

the journal entry to record actual expenses related to product warranties:

Dr Warranty liability 10,000

    Cr Cash (or inventory, or wages payable) 10,000

Depending on what type of costs are incurred by the company, the account credited will vary, e.g. if units are replaced, then inventory must be credited, or if units are repaired and only labor is used, then wages payable or cash should be credited. Since the question doesn't give us a lot of details, I credited cash.

7 0
3 years ago
What is the stock price per share for a stock that has a required return of 16%, an expected dividend $2.7 per share, and a cons
Anit [1.1K]

Answer:

Price of stock = $49.5

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:  

Price of stock=Do (1+g)/(k-g)  

Do - dividend in the following year, K- requited rate of return , g- growth rate  

DATA:

D0- 2.7

g- 10%

K- 16%

Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5

Price of stock = $49.5

3 0
3 years ago
"mary and bob are trying to decide how much auto insurance to buy". they share the same expectations of an accident, with the sa
Alexxx [7]
THEY WANT a divorice
6 0
3 years ago
A resource is ______ if the number of firms that possess it is less than the number of firms required to reach a state of perfec
Savatey [412]

Answer:

Rare

Explanation:

hope this helps :)

5 0
2 years ago
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