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
adelina 88 [10]
2 years ago
15

Kendall Company has sales of 1,000 units at $60 a unit. Variable expenses are 30% of the selling price. If total fixed expenses

are $30,000. The degree of operating leverage is
Business
1 answer:
Lelu [443]2 years ago
8 0

Answer:

There are several ways to compute the degree of operating leverage (DOL). A fairly intuitive approach is expressed below.

DOL = (sales - variable costs) / (sales - variable costs - fixed costs)

For Kendall, the DOL is computed as follows:

DOL = (1,000 * $60 - 1,000 * $60 * .30) / (1,000 * $60 - 1,000 * $60 * .30 - $30,000) = 3.5

<em>hope this helps</em>

<em />

<em />

<em />

<em />

You might be interested in
Evaluate South Africa's approach to redistribution of wealth and income ​
harina [27]

Answer:anser is

Explanation:

E

6 0
2 years ago
Identify whether the statements below are true or false by dragging and dropping the appropriate term into the bin provided.
Tema [17]

<u>Solution and Explanation:</u>

1. False-   Long run Economic growth is likely to be sustainable because of finite natural resources as othe man made resources will be available to sustain growth.  

2. False-    In mordern economy posesing few natural resources will not affect a country to develop economically; human resources and man made resources will also contribute. Foreign trade can also play an important role towards growth, in the absence of abundant natural resources.

3. True-   Natural resources are vital, and mostly exhaustible. Hence it is very essential to find suitable alternatives.

4. False- Economies of 21st century depend on human capital due to depletable atural resources.

5. True - In the 19th century, minerals and farming land were the most mportant resources, since self sustainability was in vogue.

7 0
3 years ago
With only two goods, if the income effect is in the same direction as the substitution effect then the good is ____.
Leya [2.2K]

Answer:

Normal good

Explanation:

Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.

Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.

A normal good is a good whose demand increases as income increases.

If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.

7 0
3 years ago
suppose that lenders want to receive a real rate of interest of 5%, and that they expect inflation to remain steady at 3% in the
HACTEHA [7]

The interest rate is 7%.

<u>Solution:</u>

The real rate of interest is always above the nominal interest rate when inflation is positive. In this case, we are told inflation is 3%. Since the real rate of return is the nominal interest rate minus inflation, we need a nominal interest rate of <u>5%+3%=8%</u> to get a real interest rate of 5%.

To calculate the real interest rate subtract the inflation rate from the nominal interest rate. Mathematically it looks like this The real interest rate is the nominal interest rate minus the inflation rate. Creeping inflation is a type of inflation in which the price level rises steadily at a moderate rate over an extended period of time.

Learn more about The interest rate here:-brainly.com/question/25793394

#SPJ4

7 0
1 year ago
Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's cash flow from operating activities for 201
Helen [10]

The firm's cash flow from operating activities for 2012 was D. $618000.

<h3>What Is the Definition of Cash Flow From Operating Activities (CFO)?</h3>

The cash flow from operating activities formula shows you whether or not your core business activities are successful. If your company generates a positive cash flow from operations, you may be able to fund expansion projects, launch new products, pay dividends, reduce debt, and so on.

The amount of money a company earns from ongoing, regular business activities such as manufacturing and selling goods or providing a service to customers is referred to as cash flow from operating activities (CFO).

It should be noted that the cash flow from operating activities is calculated thus:

= Operating Income + Depreciation – Taxes + Change in Working Capital

= $500000 + $140000 - $50000 + $28000

= $618000.

Learn more about cash flow on:

brainly.com/question/735261

#SPJ1

Flathead Lake Manufacturing Company has the following in it's financial statement:

Operating Income = $500000 Depreciation = $140000

Taxes = $50000

Change in Working Capital = $28000

The firm's cash flow from operating activities for 2012 was _______. $749,000$719,000$744,000$618,000

7 0
1 year ago
Other questions:
  • What is the biggest factor in determining the price of a mortgage ?
    6·1 answer
  • Smith &amp; Sons, Inc., is authorized to issue one million shares of $1 par value common stock. The company actually sells 500,0
    13·1 answer
  • For what purpose are goods and services produced in a socialist economy?
    15·2 answers
  • Fickel Company has two manufacturing departments—Assembly and Testing &amp; Packaging. The predetermined overhead rates in Assem
    8·1 answer
  • A _______ lease covers the landlord's expected increases in expenses by increasing the rent on an annual basis over the life of
    10·2 answers
  • 2. Suppose you borrow $2,000 at 5% and you are going to make annual payments of $734.42. How long before you pay off the loan
    5·1 answer
  • In what ways are consumer preferences changing in Ford’s different market segments and geographies? Are consumers able to articu
    5·1 answer
  • Knowledge capital is nonrival in the sense that Select one: a. firms do not compete to be the first to develop new technologies.
    7·1 answer
  • The post-closing trial balance helps to verify that: (Select all that apply.) Multiple select question. we prepared and posted c
    15·1 answer
  • In San Francisco there are many restaurants that specialize in a wide variety of cuisines. Patronage at these restaurants is inf
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!