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vivado [14]
3 years ago
10

A suggested project requires initial fixed assets of $227,000, has a life of 4 years, and has no salvage value. Assume depreciat

ion is straight-line to zero over the life of the project. Sales are projected at 51,000 units per year, the price per unit is $47, variable cost per unit is $23, and fixed costs are $842,900 per year. The tax rate is 23 percent and the required return is 11.5 percent. Ignore taxes. What is the DOL at the base-case output level of 51,000 units
Business
1 answer:
Rina8888 [55]3 years ago
7 0

Answer:

The answer is "11.4".

Explanation:

Please find the complete question in the attached file.

The point of breakthrough financial:

\to \frac{ ( \frac{(227000 \times 11.5 \%}{( \frac{1-1}{1.115^4})}-\frac{227000}{4})}{\frac{(1-23 \%)+842900+ \frac{227000}{4})}{(47-23)}}\\\\\\\to \frac{ ( \frac{(26,105}{( \frac{0}{1.5456084})}-56,750)}{\frac{(0.77)+842900+56,750)}{(24)}}

\to 38416.19\\\\\to DOL= \frac{38416.19 \times (47-23)}{(38416.19 \times (47-23)-842900)} \\\\

             =11.4

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The same goes for Daphne who is only willing to pay $800.

Both of them will therefore want to hire Joss but will be unable to.

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6 0
3 years ago
Milk is used in the production of cheese. Cheese and tofu are close substitutes in consumption. Milk and oreos are complements i
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<h3>Why does price decrease when demand increases?</h3>

If demand does not change, there is an inverse relationship between the supply of goods and services and the price. As the supply of goods and services increases with the same demand, prices tend to fall to lower equilibrium prices and higher equilibrium quantities of goods and services.

The relationship between price and demand is negative. H. They are inversely proportional. The inverse relationship means that when the price of a product goes up, the demand for that product goes down, and vice versa. This is due to the law of reducing marginal utility.

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8 0
2 years ago
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While stockholders equity is the amount of assets available to shareholders after all liabilities have been settled , treasury stock is the stock that is bought back by the issuing organisation with the aim of reducing the number of outstanding stock in the open market.

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4 0
3 years ago
How to paraphrase this information
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When paraphrasing, you must summarize the info without losing any of the key points.

You could say "Please submit your <u>budget requirements</u> for <u>major purchases </u>in order of highest <u>priority </u>to lowest priority to assist in <u>annual planning</u>."

This sentence hits all of the key elements more succinctly.

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