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
What is 55 billion expressed in scientific notation?
iogann1982 [59]
55 x 10^9 hope this helped :D
7 0
3 years ago
Read 2 more answers
The recording of the factory labor incurred for general factory use would include a debit to:
DanielleElmas [232]
It would be a debit to FOH (Factory Overhead).
7 0
3 years ago
Phân biệt triết lý bán hàng và triết lý Marketing
Rom4ik [11]

Answer:

I don't understand the language

5 0
3 years ago
The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakesfor $1.00 each. What is the opportun
Tasya [4]

Answer:

D) $1.00

Explanation:

Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives.

If I buy a cappuccino, I have forgone the opportunity to buy Russian tea cakes. Therefore, my opportunity cost is the price of Russian tea cakes.

I hope my answer helps you.

7 0
2 years ago
Match each economic scenario with the correct economic term.
kkurt [141]

Answer:

The answer is:

1 - Underutilization

2 - Efficiency

3 - Unattainability

Explanation:

Efficiency in economics means a situation in which all resources are optimally distributed to serve each entity in the best way while minimizing waste and inefficiency.

Underutilization in economics is also a a situation in which lesser resources are being utilized than the economy is capable of utilizing.

Unattainability is a situation in which what one to accomplish or achieve is not possible.

1 - Underutilization

2 - Efficiency

3 - Unattainability

6 0
3 years ago
Other questions:
  • What ROI will you need to double your money in 12 years​
    13·1 answer
  • To increase the money​ supply, the FOMC directs the trading​ desk, located at the Federal Reserve Bank of New​ York, to A. sell
    12·1 answer
  • Mitch is the owner of GameOn, a popular sports bar. He personally trains his servers and then gives them autonomy to make on-the
    5·1 answer
  • Allowance Method of Accounting for Bad Debts— Comparison of the Two Approaches. Kandel Company had the following data available
    11·1 answer
  • From a semiotic​ perspective, every marketing message has three basic​ components: an​ object, a​ symbol, and​ a(n) ________.
    13·1 answer
  • Make balance sheet
    14·1 answer
  • HELP ME PLEASE ILL GIVE CROWN PLEASE!!
    11·1 answer
  • The Outpost, a sole proprietorship currently sells short leather jackets for $369 each. The firm is considering selling long coa
    5·1 answer
  • coolidge Company owes $1,000 for merchandise inventory purchased from Ross Company during April. The amount owed is now past-due
    6·1 answer
  • Mason opens a savings account by making a $165. 85 deposit. Every week, he deposits another $20. 50 in the account. The followin
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!