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vovangra [49]
3 years ago
12

A​ 20% increase in sales causes EPS to rise from​ $4.00 to​$6.50. Assuming the firm has no​ debt, what is its degree of operatin

g leverage​ (DOL)?
A. 3.13 B. 2.25 C. 1.50 D. 1.57 E. 1.00
Business
1 answer:
Anna [14]3 years ago
5 0

Answer:

A

Explanation:

DOL =  Percentage change in EBIT / percentage change in sales

EPS = {(EBIT - Interest) × (1 - T) } / Shares

The firm has no debt, so interest would be zero

EPS = EBIT × (1 - T) / Shares.

Tax rate and number of outstanding shares remain unchanged.

Percentage Change in EPS = EBIT.

Percentage Change in EPS = (6.5 / 4) - 1 = 0.625 = 62.5%

EBIT = 62.5%

Percentage change in sales= 20%

DOL =  62.5% / 20% =  3.13

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Tons Beauty LLC uses the double-declining balance method for depreciation on its computers. Which item is not needed to compute
erica [24]

Answer:

Residual or salvage value isn't needed in the calculation of deprecation expense using the double declining method.

Explanation:

Deprecation expense using the double declining method = [2 ×(1/useful life)] × cost of the asset

I hope my answer helps you

8 0
3 years ago
One of the diversity challenges managers have to deal with is​ that, in addition to differences in the employee groups that make
slavikrds [6]

Answer:

cultural identity

Explanation:

According to my research on studies conducted by various sociologists, I can say that based on the information provided within the question he would need to be aware of the cultural identity of the workforce. In other words he would need to be accepted by the people in that workforce as well as James accepting them.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
2 years ago
A new machine comes with 200 free service hours over the first year. Additional time costs $150 per hour. What are the average a
pishuonlain [190]

Answer:

(a) 0; 0

(b) $150 per hour; $16.67 per hour

(c) (b) $150 per hour; $53.57 per hour

Explanation:

(a) Number of hours = 125

Marginal cost = 0 (since service is cost less upto 200 hours)

Average cost = 0

(b) Number of hours = 225

Marginal cost = $150 per hour

Total cost = $150 × (225 - 200)

                = $150 × 25

                = $3,750

Average cost = Total cost ÷ Number of hours

                       = $3,750 ÷ 225

                       = $16.67 per hour

(c) Number of hours = 325

Marginal cost = $150 per hour

Total cost = $150 × (325 - 200)

                = $150 × 125

                = $18,750

Average cost = Total cost ÷ Number of hours

                       = $18,750 ÷ 325

                       = $53.57 per hour

5 0
3 years ago
in forward and futures contracts, the risk of non-fulfilment of contract terms is most likely borne by:
topjm [15]

In forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by <u>both parties</u><u> to the contract</u>.

<h3>What are forward and futures contracts?</h3>

The difference between a forward and futures contract lies in their establishment.

A forward contract is a personal arrangement traded over the counter whereas, a futures contract is a standardized contract made through an established exchange.

Thus, in forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by <u>both parties</u><u> to the contract</u>.

Learn more about forward and futures contacts at brainly.com/question/15581105

#SPJ12

7 0
1 year ago
If the supplies on hand at the end of January totaled $500 and the Supplies on Hand account before adjustment is $900, what shou
Natali5045456 [20]

Answer:

The adjustment at month-end is :

Supplies Expense $400 (debit)

Supplies $400 (credit)

Explanation:

The Supplies Account is an asset Account that decreases as the supplies are used in the business.

The use of supplies prompts the recognition of an <em>expense</em> and de-recognition of an <em>asset</em> as follows :

<em>Supplies Expense $400 (debit)</em>

<em>Supplies $400 (credit)</em>

4 0
3 years ago
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