Suppose the Digby company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing c
1 answer:
You might be interested in
Answer:
new degree of operating leverage = 3.009
new degree of operating leverage = 3.97
Explanation:
given data
output level X = 17,500 units
operating leverage = 3.40
operating cash flow = $59,000
solution
we will apply here operating leverage equation that is
operating leverage = ..........1
here we X is output level
and we consider here
(P-V)*X =T ....................2
so equation 1 will as here as
3.4 =
T = 3.4 T - 3.4 FC
so
2.4 T = 3.4 FC
so now put T here from equation 2
so
now for operating leverage for X = 18,500 units
new degree of operating leverage
new degree of operating leverage =
put here
new degree of operating leverage =
new degree of operating leverage = 3.009
and
now for operating leverage for X = 16,500 units
new degree of operating leverage
new degree of operating leverage =
put here
new degree of operating leverage =
new degree of operating leverage = 3.97
Answer:
$30848.75 cause it already rounded to the nearest penny
Explanation:
First have to find the interest.
Interest = principal * rate * time
Principal ( money borrowed) = $29000
Rate =8.5% or or
Time = 9 months which in this case will be years since the time is calculated in years.
Interest =
=
=
= $1848.75
Now to find the amount Wet Dog will pay you have to add the interest to the Principal.
Amount = $29000 +$ 1848.75
= $30848.75