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NemiM [27]
3 years ago
13

Light Me Up Lamps has variable expenses of 50​% of sales and monthly fixed expenses of $ 200 comma 000. The monthly target opera

ting income is $ 30 comma 000. What is Light Me Up​ Lamps' operating leverage factor at the target level of operating​ income?
Business
1 answer:
NARA [144]3 years ago
4 0

Answer:

Operating Leverage Factor 7.67

Explanation:

Operating leverage factor is a very important measure of a company for forecasting growth. It shows the contribution margin that is necessary to gain against one $1 of operating income.

Contribution margin Ratio = Fixed cost + Target operating Income

Contribution Margin = $200,000 - 30,000 = $230,000

Operating Leverage factor = Contribution margin /  Target Operating Income

Operating Leverage factor = $230,000 / $30,000 = 7.67

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Its in the body o

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In corporations, it is easy to transfer ownership by selling stock.<br> Select one: true or false
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Answer:

the question is false

Explanation:

you can't sell stock for ownership

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2 years ago
Suppose a company signs a three-year lease agreement. The lease payments have a present value of $40,000. Prior to signing the l
larisa [96]

Answer:

The balance of total assets, total liabilities, and total stockholders' equity is $640,000, $440,000 and $200,000 respectively.

Explanation:

The computation of the balance of total assets, total liabilities, and total stockholders' equity after considering the lease payment  is shown below:

For Total assets  

= Total assets balance + present value of lease payments

= $600,000 + $40,000

= $640,000

For Total liabilities

= Total liabilities balance + present value of lease payments

= $400,000 + $40,000

= $440,000

And, the total stockholders' equity is $200,000

While computing the stockholder equity, the lease payment does not have an impact on the stockholder equity so the balance would remain the same as before

4 0
3 years ago
Evidence by Blake, Elton, and Gruber indicates that, on average, actively managed bond funds ______. outperform passive fixed-in
Andrei [34K]

Answer:

The answer is: underperform passive fixed-income indexes by an amount equal to fund expenses

Explanation:

According to Blake, Elton, and Gruber (The Journal of Business, 1993), the only people who benefit from actively managed bond mutual funds are those that work for the mutual funds and not their clients.

They discovered that when the mutual funds increased their fees in 1%, the total performance decreases in 1%.

7 0
3 years ago
Suppose that the market demand curve for scooters is given by P = 300 - 5Q, where P is the price and Q is total industry output.
BigorU [14]

Answer:

The total number of scooters is 10

Explanation:

Total profit is maximized where Marginal Revenue (MR) = Total Marginal Cost

= 50 + 50 + 50 + 50 = $200

TR = P × Q = (300 - 5Q) × Q = 300Q - 5Q²

So, MR = \frac{d(TR)}{dQ} = 300 - 2(5Q) = 300 - 10Q

Now, MR = 200 gives,

300 - 10Q = 200

So, 10Q = 300 - 200 = 100

So, Q = \frac{100}{10}

So, Q = 10

7 0
3 years ago
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