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son4ous [18]
3 years ago
10

The accounting manager of Gateway Inns has noted that every time the inn's average occupancy rate increases by 3.3 percent, the

operating cash flow increases by 4.6 percent. What is the degree of operating leverage if the contribution margin per unit is $47?
Business
1 answer:
Archy [21]3 years ago
8 0

Answer: 26.15

Explanation: The degree of operating leverage is calculated as the percentage change in operating income in relation to a percentage change in sales.

Thus the degree of operating leverage of Gateway inn is calculated thus:

DOL = Cont Margin/Operating income

DOL = 47/(4.6-3.3)

DOL = 47/1.3

DOL= 26.15

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Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. I
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Answer:

Mike's Motors Corp.

Cash Budget

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Beginning balance          $41,000          $30,000          $30,000

Cash receipts                   92,000            118,000           157,000

Total cash available      $133,000         $148,000        $187,000

Cash payments              120,000           106,900           134,400

Interest/Loan repayment                         11,100              6,602

Cash balance                    13,000            30,000            45,998

Cash to borrow                 17,000                      0               0

Minimum cash balance $30,000          $30,000          $30,000

Explanation:

a) Data and Calculations:

Minimum cash balance = $30,000

Interest rate on borrowings = 3% per month

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                                           July             August        September

Beginning balance        $41,000          $30,000          $30,000

Cash receipts                 92,000            118,000           157,000

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Loan is repaid = 10,590

Total paid =        $11,100

Balance of loan unpaid = $6,410 ($17,000 - 10,590)

In September:

Interest on loan = $192 ($6,410 * 3%)

Loan repaid =     6,602 ($6,410 + 192)

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A firm has the production function y = min{x1, x2} + min{x3, x4}. This firm faces competitive factor markets where the prices fo
ANTONII [103]

Answer

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Answer:

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