Answer:
The degree of operating leverage and the expected percent change in income, respectively, are 3.0 and 24%. The right answer is E.
Explanation:
In order to calculate the degree of operating leverage we would have to use the following formula:
opearting leverage=<u>contribution margin</u>
operating income
operating leverage=<u>$72,000</u>
$24,000
operating leverage=3.0
In order to calculate the degree of expected percent change in income we would have to use the following formula:
percent change in income=percent change in sales×operating leverage
percent change in income=8%×3
percent change in income=24%
The degree of operating leverage and the expected percent change in income, respectively, are 3.0 and 24%
The more firms get from obligation as opposed to issuing stocks, the more it can diminish the aggregate cost of capital in light of the fact that the enthusiasm from obligation is duty deductible which will help reduce the aggregate cost of capital. In any case, no firm can get from obligation everlastingly in light of the fact that, at one point in time, extra obligation financing will make the aggregate cost of capital increment rather than decline. So firms will get in view of their own enhanced capital structure to limit the aggregate cost of capital however much as could reasonably be expected. Also, in light of this upgraded capital structure, there is a point of confinement to how much a firm can keep getting from obligation.
I don't understand this question well, but try a Windows.
She profits more each month
Answer:
PED= 0.1571
Explanation:
The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:
Price Elasticity of Demand = Percentage change in Q/ Percentage change in P
In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:
%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%
%Change in quantity is= -6%
PED= -6%/38.17%
In absolute value:
PED= 0.1571
If the PED is less than 1 then gasoline is considered as inelastic.
