Answer: Schlictor's operating leverage when 2000 units are sold is 3.
The degree of operating leverage is used to calculate the change in operating income with respect to a percentage change in sales.
We can calculate operating leverage of a firm with the help of the following formula:
Substituting the values from the question we get
![Degree of operating leverage = \frac{(50 * 2000) - (50*0.40*2000)}{[50*2000] - [(50*0.4*2000) + 40000]}](https://tex.z-dn.net/?f=Degree%20of%20operating%20leverage%20%3D%20%5Cfrac%7B%2850%20%2A%202000%29%20-%20%2850%2A0.40%2A2000%29%7D%7B%5B50%2A2000%5D%20-%20%5B%2850%2A0.4%2A2000%29%20%2B%2040000%5D%7D)
![Degree of operating leverage = \frac{100000 - 40000}{[100000] - [(40000) + 40000]}](https://tex.z-dn.net/?f=Degree%20of%20operating%20leverage%20%3D%20%5Cfrac%7B100000%20-%2040000%7D%7B%5B100000%5D%20-%20%5B%2840000%29%20%2B%2040000%5D%7D)
Answer:
He must deposit $8,939.48 every year.
Explanation:
The explanation is attached below
Answer:
Price =$1,285.71
Explanation:
<em>A perpetual bond is that which pays a fixed amount of interest income for the foreseeable future. It issuer does not always have an obligation for redemption under the terms of loan contract.</em>
The price of perpetual bond can be determined as the present value of a perpetuity. An perpetuity is an annuity that pays a fixed amount of cash flow for a certain number of years
PV = A/r
PV- price of bond- ?
A- annual interest - 45
r- Yield to maturity- 3.5%
Price = 45/0.035=1,285.714
Price =$1,285.71
It would be A!
Explanation: $50,000(equipment)+$2,500(freight charges)+$1,500(installation cost)+$1,000(sales tax)+3000(cost to hire special consultant=58,000
