1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Goshia [24]
3 years ago
15

Praxis Corp. forecasts the following income statement for the next year:

Business
1 answer:
Annette [7]3 years ago
3 0

Answer: a. 1.42

b) 2.74

c) 3.89

Explanation:

a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.

It is calculated with the formula,

= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)

= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)

= 1.42

b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.

The formula is,

=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax

= 301,000/110,000

= 2.74

c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.

It is calculated by multiplying DOL and DFL.

= 1.42 * 2.74

= 3.89

Should you need any clarification just hit that comment button. Cheers.

You might be interested in
On March 3, Cobra Inc. purchased a desk for $280 on account. On March 22, Cobra purchased another desk for $410 also on account,
damaskus [11]

Answer:

The amount of $690  should recorded for desks

Explanation:

The amount which should be reported for desks at the end of march is computed:

Amount that should be reported for desks = Purchased on March 3 + Purchased on March 22

where

Purchased on March 3 amounts to $280

Purchased on March 22 amounts to $410

Putting the values above:

Amount = $280 + $410

= $690

Therefore, the amount of $690, which is to be recorded for the desks purchased by the Cobra company.

4 0
3 years ago
The money multiplier equals:________.
Serjik [45]

Answer: B. 1/R, where R represents the reserve ratio for all banks in the economy.

Explanation:

The Money Multiplier is the money that Banks generate given a certain RESERVE REQUIREMENT/RATIO.

A Reserve Requirement is money that the Central Bank requires that Banks do not loan out and instead keep in reserve.

For example, if the reserve rate is 10% and a bank has $10 they can only loan out $9.

Assuming they loan out $9 then they created $19 in the economy because their customers still own the original $10 but now they have also given loans of $9. The people who take the loans then deposit it in another bank. That bank would keep $0.90 in reserve and loan out $8.10 meaning that $27.10 now exists in the economy.

The process goes on and on until it gets to $100.

A simpler way to get to the final figure is to divide 1 by the reserve requirement = 1/r which is the money multiplier.

Using the above example, that would be 1/0.1 which is 10.

Multiplying this 10 by the initial deposit of $10 will give you that same $100.

8 0
3 years ago
Read 2 more answers
Which business model sells goods or services to buyers who then resell or use them for business purposes?
astra-53 [7]

Answer:

<u>wholesalers, distributors and manufacturers</u>.

Explanation:

The <u>wholesalers, distributors, and manufacturers</u> trade goods or services to consumers, which then resell or utilize them for trading persistence. Resellers purchase goods in a large amount from other companies such as wholesalers, distributors, and manufacturers. Later they trade the singular factors to purchasers, at a favorable cost. Thou won’t gain enough hype throughout reselling. That’s the conventional method of retailing, which we distinguish from most utmost huge mall storehouses autonomous independent online stores.

5 0
3 years ago
Why have nonalcoholic drinks increased in popularity, and what difficulties do bar managers face when serving alcohol
Verizon [17]

Answer:

People consumes less of alcohol and more of non alcoholic drinks.

Explanation:

Now-a days people consumes less of alcoholic drinks as non alcoholic beverages or drinks are becoming non popular day by day. People have become more health conscience and wants to remain fit. Now wonder alcohol causes a lot harm to the human health. People now are aware of the side effects of consuming alcohol.

In the recent years the life style of the people have change a lot and they they have become health conscious than before. The consumption of other non alcoholic drinks have become familiar and famous including green tea, fruit juices, goji juice and many more.

The bar managers also face difficulty in serving alcohol to people as people refuse to drink them. They are more health conscience and is aware of the fatal incidents about drunk driving. They prefer other non beverages in the bar. As a result the sale of alcohol has decreased a lot. There are also various awareness programs running against consumption of alcohol.Thus people do not drink alcohol any more and so it is difficult for the bar managers to offer alcohol to their customers.

4 0
3 years ago
Does anyone have a way or trick on using like blocked websites on a school chromebook?
kap26 [50]
I’m pretty sure u can disable or some way but it depends on like the type of thing your school uses to block websites :(
4 0
3 years ago
Other questions:
  • Which type of flash memory card is currently the smallest type of card?
    5·1 answer
  • Jensen performed legal services to assist Balm Co. in accomplishing its initial organization. Jensen accepted 1,000 shares of $5
    12·1 answer
  • Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $26,000 with an adjusted basis
    6·1 answer
  • Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and
    14·1 answer
  • And construction Falls to a lower level a major cause of fatalities true or false
    15·1 answer
  • In agriculture, a "bumper crop" refers to a particularly productive harvest. If there is a bumper crop for wheat at the same tim
    14·1 answer
  • Ahmad bought a desktop computer and a laptop computer. Before finance charges, the laptop cost less than the desktop. He paid fo
    12·2 answers
  • The average variable costs of a company are equal to $20 per unit produced at its current level of output in the short run. Its
    10·1 answer
  • Define the concept entrepreneur​
    13·2 answers
  • Organizational culture is likely to be particularly salient when viewing the organization through a _______ lens
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!