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alexandr1967 [171]
3 years ago
11

Calculate the degree of operating leverage for the company below:Expected Quantity 50,000Total costs300,000Variable costs215,000

DOL ______________Operating Cash Flow250,000If actual quantity is 56,000 units, the percentage increase will be___________If this happens, OCF will increase by what %
Business
1 answer:
Alecsey [184]3 years ago
5 0

Answer:

Degree of Operating Leverage = 1.34

The Operating cash flow increases by 12%

The new operating cash flow is $290200

Explanation:

% change in Operating Cash Flow = Degree of Operating Leverage  * % change in sales

There is need to calculate Degree of operating leverage first. Degree of operating leverage = Contribution / EBIT

Where Contribution = OCF + Fixed costs / OCF

Fixed costs= Total costs - variable costs = 300000 - 215000

Fixed Cost= 85000

 

Degree of operating leverage = (250000 + 85000) / 250000

DOL= 1.34

% change in OCF = DOL * % change in sales

% change in sales = (56000 - 50000) / 50000 = 12%

% change in OCF = 1.34 * 12% = 16.08%

New OCF = 250000 * (1+16.08%)

=$250000 * (1 + 0.1608)

=$250000(1.1608)

= $290200

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Answer:

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Explanation:

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4 0
3 years ago
Paul consumes only books and DVDs. At his current consumption​ bundle, his marginal utility from DVDs is 23 and from books is 5.
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Answer:

Paul is not maximizing his utility because MUd/Pd is greater than MUb/Pb

Explanation:

Marginal utility is the extra satisfaction derived from spending an additional unit of money on consuming a particular product or service.

In order to determine if he is maximizing his utility, we must calculate his utility per dollar, and this is done by dividing his Marginal Utility by the price.

Marginal Utility per dollar of DVDs is:

MUd/Pd = 23/11 = 2.09

Marginal Utility per dollar of books is:

MUb/Pb = 5/3 = 1.67

Utility is maximized when MUd/Pd is equal to MUb/Pb and Paul has exhausted his budget.

4 0
3 years ago
The high-income economies of the world contain approximately __________ of the world’s population and produce and consume ______
Annette [7]

The high-income economies of the world include approximately 12% of the world’s population and produce and consume 60% of the world’s GDP.

<h3>What is GDP?</h3>

The gross domestic product stands as a monetary measurement of the market value of all the final goods and services produced in a distinctive period by countries. Due to its complex and subjective nature, this measure exists often revised before being deemed a reliable indicator.

Gross domestic product (GDP) stands for the total monetary or market value of all the finished goods and services constructed within a country's borders in a typical period. GDP measures the worth of the final goods and services produced in the United States (without double counting the middle goods and services used up to produce them).

The high-income economies of the world include approximately 12% of the world’s population and produce and consume 60% of the world’s GDP.

To learn more about GDP refers to:

brainly.com/question/1383956

#SPJ4

6 0
1 year ago
Seasonal unemployment is : A. due to the fact that workers must search for appropriate job offers. B. a result of a poor match o
JulijaS [17]

Answer:

C. a result of the seasonal pattern of work in specific industries

Explanation:

Seasonal Unemployment results out of seasonal demand of labor in those industries where the nature of job is dependent upon weather or business seasons.

For example in case of crops, during the harvest season, there is high demand for labor while during the rest of the year there is no demand at all. So laborers of such industries are employed for a fixed duration in an year and remain unemployed for the rest of the period.

This unemployment is not due to inadequacy of labor skills but results owing to nature of the industry and seasonal pattern of the work required.

8 0
3 years ago
Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will
-BARSIC- [3]

Answer:

$24.86

Explanation:

The estimated stock of Zephyrl is $50

This is for a period of 5 years

The rate of return is 15%

Therefore the price that will be paid for this stock can be calculated as foloes

50= x (15/100^5)

50= x (0.15+1^5)

50= x (1.15^5)

50= 2.0113x

Divide both sides by the coefficient of x

= 50/2.0113

= 24.86

Hence the price that will be paid for the stock is $24.86

3 0
3 years ago
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