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OLga [1]
3 years ago
6

If sales are $400,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage

Business
1 answer:
viva [34]3 years ago
3 0

Answer:

operating leverage= 0.17

Explanation:

Giving the following information:

Sales= $400,000

Variable costs= 75% of sales

Operating income= $40,000

To calculate the operating leverage, we need to use the following formula:

operating leverage= fixed costs/total costs

Fixed costs= (400,000*0.25) - 40,000= 60,000

Total costs= 400,000*0.75 + 60,000= 360,000

operating leverage= 60,000/360,000

operating leverage= 0.17

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GrogVix [38]

Answer:

Consider the following calculations

Explanation:

A. Dividend per Share = Dividend Payout Ratio * Earnings Per Share

Putting the values given to calculate dividend per share we get,

Stages DPS = Payout Ratio * EPS DPS

Stage 1 =0.00*$0.30                         $0

Stage 2 = 0.13*1.95                         $0.25

Stage 3 =0.31 * $ 2.80                         $0.868

Stage 4 = 0.56*$3.40                         $1.90

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5 0
3 years ago
A marine biologist is planning to move from Sydney, Australia to San Francisco. She has $5,000 Australian dollars (AUD) to make
natita [175]

Answer:

Now, if takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:5,000 AUD * (0.5 USD/AUD)

5,000 * 0.5

= $2,500

so, her AUD will be worth more now.

Explanation:

Solution

Given that:

Her present  $5,000 AUD is worth $3,825 USD.

Then

5,000 AUD * (0.765 USD/AUD)

5,000 * 0.765

= $3,825

So,

If the USD dollar increases against the AUD, then, the ratio will reduce.

For example, it takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:

5,000 AUD * (0.5 USD/AUD)

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6 0
3 years ago
Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the c
grin007 [14]

Answer:

Windhoek Mines, Ltd.

The net present value of the proposed mining project is:

=  ($232,950).

Explanation:

a) Data and Calculations:

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Working capital required  = $100,000

Annual net cash receipts = $120,000

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Cost of new equipment and timbers  $500,000      1               -$500,000

Working capital required                        100,000       1                 -100,000

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Working capital released in 4 years     100,000     0.482              48,200

Net present value                                                                      ($232,950)

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zavuch27 [327]
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3 years ago
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