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3 years ago

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.

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2 years ago

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3 years ago

Millions of people from Mexico have migrated to the United States. This has reduced the supply of labor in Mexico and increased

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Answer:

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Explanation:

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I hope my answer helps you

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3 years ago

Suppose there are 1000 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 worker

Triss [41]

Answer:

d. the quantity demanded for the market will increase to less than 30,000 workers.

Explanation:

Missing options:

a. the quantity demanded for the market will increase to 30,000 workers.
b. the quantity demanded for the market will increase to more than 30,000 workers.
c. the quantity demanded for the market will increase, but we can't tell which of the above answers is correct.
d. the quantity demanded for the market will increase to less than 30,000 workers.

maximum total demand for labor = 30 (at $8) x 1,000 firms = 30,000 workers, but since the equilibrium rate had been $9 for many years, some workers have already been hired at $9, and it is usually very difficult to lower someone's wage once they have been working. Even thought the quantity demanded will increase, it will probably not be able to reach 30,000 workers.

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3 years ago

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otez555 [7]

Answer:

True

Explanation:

Quizlet: Name three common types of checking account? basic checking account, interest-banking checking account, and Lifeline checking accounts.

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2 years ago