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>
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Answer:
$338,712
Explanation:
we must first calculate the monthly payment using the present value of an annuity formula:
present value = monthly payment x annuity factor
present value = $340,000
PV annuity factor, 0.529167%, 420 periods = 168.38268
monthly payment = $340,000 / 168.38268 = $2,019.21
Since the monthly payment was actually higher than $1,800, the balloon payment will be almost $340,000
I prepared an amortization schedule using an excel spreadsheet. During the first years, the principal is only decreasing by $1 each month
Answer:
D. Zeta prevails, but only if the assignment is signed and in writing
Explanation:
Zeta prevails but only if the assignment is in writing and is signed.
If the assignment is express thereby and is signed by the parties in contract , then zeta can demand the amount from willy. Without any written consent and permission , willy cannot enforce the payment to zeta.
This is the best option in this case .
