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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:

C. consumer.

Explanation:

As we know that the customer products need to be modified or customized according to their need and interest so that they received the maximum satisfaction

Therefore as per the given situation, the product that needed larger modification for meeting out the requirement of the market worldwide is the consumer product

Therefore the option c is correct

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Genrish500 [490]

Answer:

a)  €152081.6128

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Explanation:

a) The cost of dampners in terms of then-current euros :

current cost x(1 + inflation rate)ⁿ where n is the number of years.

Since the price of dampners is expected to increase only by 4% per year from the current price of €125,000 in 5 years:

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3 years ago
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Evan bought into a housing cooperative that's focused on cultural exchange. Each month, the co-op residents have dinner meetings
Nonamiya [84]

He would also receive a shares in the cooperative corporation as he received a proprietary lease for his unit.

<h3>What is a proprietary lease?</h3>

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Hence, in the context, Evan would also receive a shares in the cooperative corporation as he received a proprietary lease for his unit.

Read more about proprietary lease

<em>brainly.com/question/14527094</em>

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6 0
2 years ago
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,470 May 3,830 June 4,570 July
Ne4ueva [31]

Answer:

1. Production units for April      3,650 units

  Production units for May       4,200 units

  Production units for June       4,370 units

2. Budgeted cost of materials for April = $ 21,980

   Budgeted cost of materials for April = $ 23,996

Explanation:

Computation of budgeted production units

                                                                                  April          May         June  

                                                                                 Units         Units        Units

Ending Inventory - 50 % of next  month                 1,915        2,285       2,085

Add: Sales                                                                 3,470       3,830      4,570

Less: Opening Inventory-50% of current month   <u>( 1,735)</u>      <u>(1,915)</u>     (<u>2,285)</u>

Production units for the  month                            3,650       4,200      4,370

Computation of cost of materials

Units production                                                      3,650         4,200      4,370

Material requirement per unit - 2 pounds            

Total material requirement for production             7,300         8,400      8,740

Closing inventory-50% next month production     4,200         4,370                                                                                                    

Opening inventory-50% of current production     <u>( 3,650)  </u>    <u> (4,200)</u>

Total material requirement for production              7,850        8,570

Cost per pound of direct material  $ 2.80

Total direct material Budget                                 $ 21,980   $ 23,996

4 0
2 years ago
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