Answer:
Degree of Operating Leverage = 1.24
Explanation:
given data
Selling price = $35.50 per bear
Total fixed cost = 1,450.00 per month
Variable cost = 16.50 per bear
sells = 390 bears
solution
we get here Degree of Operating Leverage that is express as
Degree of Operating Leverage = Contribution Margin ÷ Operating Income .................1
and
Contribution Margin = Sales - Variable cost .................2
Contribution Margin = (390 bears × $35.50) - (390 bears × $16.50)
Contribution Margin = $7410
and
Operating Income = Sales - Variable cost - Fixed Costs ................3
Operating Income = (390 bears × $35.50) - (390 bears × $16.50) - $1450
Operating Income = $5960
so put value in equation 1
Degree of Operating Leverage =
Degree of Operating Leverage = 1.24
Answer: Option C
Explanation: Usually the demand for the goods tends to be more elastic in long run rather than the short run. In case of oil, it is not a necessary good for the daily lives of the individuals and one can survive without it and can use alternatives.
Therefore, in the long run it is more elastic as individuals will move to the alternatives of oil if its price remains high.
Hence from the above we can conclude that the correct option is C.
Answer:
A. Workers are trained to do all or most of the jobs in the unit
Explanation:
A self-managed team is a group of employees that's responsible and accountable for all or most aspects of producing a product or delivering a service. Traditional organizational structures assign tasks to employees depending on their specialist skills or the functional department within which they work
Answer:
What amounts of
Warranty Revenue 50000
Unearned Warranty Revenue 150000
Explanation:
Cash 200000
Unearned revenue 200000
Sold warranty
Unearned Revenue 50000
Extended warranty 50000
Answer:
Worth of Insurance settlement $426.5
Explanation:
Present value of Insurance settlement = P [ ( 1 - ( 1+r )^-n ) / r ]
Present value of Insurance settlement = 50 [ ( 1 - ( 1 + 3% )^-10 ) / 3%]
Present value of Insurance settlement = 50 [ ( 1 - ( 1 + 0.03 )^-10 ) / 0.03]
Present value of Insurance settlement = 50 [ ( 1 - ( 1 .03 )^-10 ) / 0.03]
Present value of Insurance settlement = 50 [ ( 1 - ( 1 .03 )^-10 ) / 0.03]
Present value of Insurance settlement = 50 [ ( 1 - 0.7441 ) / 0.03]
Present value of Insurance settlement = 50 [ 0.2559 / 0.03]
Present value of Insurance settlement = 50 x 8.53
Present value of Insurance settlement = 426.5