1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
navik [9.2K]
3 years ago
14

At an output level of 15,200 units, you have calculated that the degree of operating leverage is 2.60. The operating cash flow i

s $57,500 in this case. Ignore the effect of taxes. a. What are fixed costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will the operating cash flow be if output rises to 16,200 units?
Business
1 answer:
inessss [21]3 years ago
4 0

Answer:

Will increase up to $67,332.5

Explanation:

As per the information we have,

output level = 15,200units

operating leverage = 2.60

operating cash flow = $57,500

First we will calculate the fixed cost:

we can calculate fixed cost with the help of degree of operating leverage formula:

degree of operating leverage = 1 + fixed cost / operating cash flow

2.60 = 1 + fixed cost / 57,500

57,500 + fixed cost = 2.60 * 57,500

fixed cost = 149,500 - 57,500 = $92,000 is the fixed cost.

Now, let us calculate the operating cash flow if output rises to 16,200units:

Percentage Change in Quantity Sold = (16,200 – 15,200) / 15,200 = 0.0658 or 6.58% Percentage Change in OFC = DOL × Percentage Change in Quantity Sold    

= 2.6 × 0.0658 = 0.171

New OCF = 57,500 * ( 1 + 0.171)

= 57,500 × 1.171 = $67,332.5

You might be interested in
When may a certificate holder request a hearing after receiving a notice of violation of TABC?
lapo4ka [179]
<span>You have 20 days to file a motion to request a hearing for a violation of the TABC. If the motion is denied, the permitee then has 30 days to file an appeal. The District Court then has 10 days to set the date for the hearing for the appeal.</span>
3 0
3 years ago
Read 2 more answers
The SBA is a source of assistance that provides small businesses with the following
Colt1911 [192]

Answer:

  • government contracting
  • advocacy
  • entrepreneurial development
  • access to capital

Explanation:

SBA is a US government agency whose core mandate is to support the growth of small businesses. The Small Business Association(SBA),  promotes economic growth by providing useful resources and information to help them start and develop small businesses.

The  SBA supports the advancement of small businesses in the following ways.

  1. Education and training,
  2. Providing information and links to affordable credit
  3. Connecting to government contracts
  4. Offering business advise
7 0
3 years ago
Local Inventory Ads allow retailers to promote their in-store inventory and drive
lana [24]

Answer:

True

Explanation:

Local inventory ads show people that are using Google the information about a nearby store and the products that are available there which helps to increase the sales in the stores.

According to this, the answer is that the statement that says that Local Inventory Ads allow retailers to promote their in-store inventory and drive  shoppers to their brick-and-mortar stores is true because these ads show people the inventory available in a nearby store which helps to get more customers to go there.

4 0
3 years ago
Kallie Smith, owner of Flower Hour, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charg
user100 [1]

Answer:

Use the high-low method to determine Flower Hour's cost equation for van operating costs.

  • total cost = $1,355 + ($0.25 x total miles)

Use your results to predict van operating costs at a volume of 15,000 miles.

  • total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

Explanation:

Month                 Miles driven           Van Operating Costs

January                    15,800                        $5,460

February                  <u>17,300</u>                         <u>$5,680</u>

March                       14,600                        $4,940

April                         16,000                         $5,310

May                           17,100                        $5,830

June                         15,400                        $5,420

July                           <u>14,100</u>                        <u>$4,880</u>

high cost - low cost = $5,680 - $4,880 = $800

high cost - low cost = 17,300 - 14,100 = 3,200 miles

variable cost per mile = $800 / 3,200 miles = $0.25 per mile

total variable cost when driving 14,100 miles = 14,100 miles x $0.25 per mile = $3,525

total fixed cost = $4,880 - $3,525 = $1,355

total cost = $1,355 + ($0.25 x total miles)

total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

5 0
3 years ago
Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are lo
Rzqust [24]

Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are located in the United States, predominantly in small towns in 24 midwestern and south eastern states. In the current year, the company reported average inventories of $ 1,668 million and an inventory turnover ratio of 8.0.

Fixed assets turnover ratio = 9.04 Net sales / Avera.

This ratio divides net sales by net fixed assets, calculated over an annual period. The net fixed assets include the amount of property,

Using Fixed Assets turnover ratio, we can find the net sale

Fixed Assets turnover = Net sale/Average fixed assets

$ 2,098 Net sale/1218674000

Net sale is=$ 2,098 × 1218674000

Net Sales is=$ 9.140.055000

Learn more about turnover ratio  here

brainly.com/question/27523896

#SPJ4

6 0
1 year ago
Other questions:
  • Firm A pays $0.80 a year as dividends on its common stock. Currently this stock sells for $28.12 a share. Last year, at this tim
    11·1 answer
  • What is the effect of using both a variable and a control in an experiment?
    10·1 answer
  • "Government works to create a competitive marketplace because it believes competition helps markets function well. Yet governmen
    12·1 answer
  • Describe the differences between traditional marketing communication strategies and service business communication strategies.
    15·1 answer
  • Marigold Corp.'s account balances at December 31, 2020 for Accounts Receivable and the related Allowance for Doubtful Accounts a
    12·1 answer
  • Required information Skip to question [The following information applies to the questions displayed below.] Tamar Co. manufactur
    14·1 answer
  • Analyze the role individual team members and leaders play in ensuring or detracting from team success. In the analysis, consider
    7·1 answer
  • Portland Sardines produced $14 million worth of cans of sardines. In producing these cans of sardines, it purchased $2 million d
    5·1 answer
  • Amerigo grew up speaking both English and Italian with his family, and he believes that knowledge of more than one language is a
    9·2 answers
  • A tax on the amount of money a person earns in a year is a(n)
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!