Given the market for illegal drugs, when thegovernment is successful in reducing the flow ofdrugs into the United States,

At an output level of 415,400 units, you have calculated that the degree of operating leverage is 2.00. The operating cash flow

katen-ka-za [31]

Answer:

the new degree of operating leverage for output levels of 16,400 units and 14,400 units will be -0.0858 and - 0.0745 respectively.

Explanation:

From the given information:

the degree of operating the leverage at 415,400 units = $\mathtt{\dfrac{contribution \ \ margin}{operating \ \ income}}$

where contribution margin = 2 × 58000 =116000

If we assume that the sales price should be p and the variable cost be q per unit .

Then, 415,400p - 415,400q = 116000

p - q = $\mathtt{\dfrac{116000}{415400}}$

p - q = 0.279 at 415400 unit

Contribution margin = 415400 × 0.279

Contribution margin = 115896.6

The operating income = contribution margin - fixed expense

58000 = 115896.6 - fixed expense

fixed expense = 115896.6 - 58000

fixed expense = 57896.6

However, when the output level is 16400 unit,

the contribution margin = 16400(p-q)

the contribution margin = 16400(0.279)

the contribution margin = 4575.6

The operating leverage = $\mathtt{\dfrac{contribution \ \ margin}{contribution \ \ margin - fixed \ \ costs}}$

The operating leverage = $\mathtt{\dfrac{4575.6}{4575.6 - 57896.6}}$

The operating leverage = $\mathtt{\dfrac{4575.6}{-53321}}$

The operating leverage = -0.0858

when the output level is 14400 unit,

the contribution margin = 14400(p-q)

the contribution margin = 14400(0.279)

the contribution margin = 4017.6

The operating leverage = $\mathtt{\dfrac{contribution \ \ margin}{contribution \ \ margin - fixed \ \ costs}}$

The operating leverage = $\mathtt{\dfrac{4017.6}{4017.6 - 57896.6}}$

The operating leverage = $\mathtt{\dfrac{4017.6}{-53879}}$

The operating leverage = - 0.0745

7 0

4 years ago

The Super Widget Corporation has 20,000 shares of stock outstanding. A. If it declares dividends of $42,500, what is the dividen

inysia [295]

Answer:

A. $42,500/20,000=$2.125 per share

B. Total dividend=50*2.125=$106.25

Explanation:

A. The dividend per share of the Super Widget Corporation can be calculated using the following formula:

Dividend per share=declared dividend amount/number of shares

=$42,500/20,000=$2.125 per share

B.Since the Kevin Rainey owns 50 shares of the Super Widget Corporation, therefore the total dividend of Kevin Rainey will be determined using the following formula:

Total dividend=50*2.125=$106.25

6 0

3 years ago

A business organized as a separate legal entity from its owners is a: Proprietor Partnership Government unit Corporation

Evgen [1.6K]

Answer:

Corporation.

Explanation:

A business organized as a separate legal entity from its owners is a corporation.

A limited liability company (LLC) can be a corporation and basically it refers to a private company in which the owners are legally responsible for the company's debts but only to the amount of capital he or she has invested. The LLC can be referred to as a hybrid business entity that combines the limited liability-shield of a corporation with the pass-through taxation of a sole-proprietorship or partnership business.

In the United States of America, the owner of a LLC is not legally liable for the company's liability or debts.

Additionally, it is very important that in the decision-making process, an organization consults a variety of its key or essential staffs such as managers, directors, stakeholders and executives. Furthermore, when the decision making process has been completed and a position taken, it is necessary that the organization communicates in clear and concise terms the details or parameters which influenced the choice to its audience such as investors, customers, employees etc.

3 0

3 years ago

All the combinations of goods and services that can be produced if all of society's resources are used efficiently are represent

kondaur [170]

Answer:

C. Production Possibility frontier

Explanation:

The production possibility frontier (PPF) is a graph that shows what levels of output of two goods can be produced using available resources and technology.

Just individuals can not have everything they want and must make choices between different goods, society as a whole also can't have everything it might want either. This PPF depicts constraints faced between the resources

6 0

3 years ago

What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook auth

denpristay [2]

Answer:

The equilibrium may increase, decrease or remain the same.

Explanation:

If more students attend college they will need textbooks, so the demand for textbooks will increase. This will cause the demand curve to shift to the right.

At the same time, as paper becomes cheaper, the cost of producing textbooks will get reduced. This will increase the supply of new textbooks. This increase in supply will cause the supply curve to shift to the right.

If textbook authors accept lower royalties the cost of production for textbooks will decrease, so the supply will increase.

If fewer old textbooks are sold, the demand for new textbooks will increase.

This increase in both demand and supply of textbooks will increase the equilibrium quantity of textbooks. But the change in equilibrium price depends on the proportionate change in demand and supply.

If both demand and supply increase by the same proportion, the equilibrium price will remain the same.

If demand increases more than the supply, the equilibrium price will increase.

If supply increases more than demand, the equilibrium price will fall.

6 0

3 years ago