Answer:
Option C is the answer
Explanation:
The degree of operating leverage is measured by dividing the contribution margin by operating income.
The degree of operating leverage (DOL) is the ratio of contribution margin to operating income. It measures how much the operating income of a company will change in response to a change in sales. A Companies that have higher proportion of fixed costs to variable cost will have greater levels of operating leverage.
Back when interest rates were high, I had just one account. I had a money-market checking account that offered good interest rates and unlimited check writing. But those days are long gone.
I want as high an interest rate as I can get for my savings. In order to get those rates, I am using a money-market savings account. All such accounts I’ve seen restrict the number of transactions I can make in a month. I need to be able to pay bills, no matter how many of them there are — and I never ever want to pay fees for excess transactions!
So I have a separate checking account. It pays less than half the interest rate of my savings account, but I can make as many transactions as I want. The bank offers a bill pay application that I use for most payments, and I can write as many checks as I want to. I can transfer money between the accounts quickly.
Answer:
Month incurred Amount June July August
June 75,000 37500 18,750 18,750
July 95,000 47,500 23,750
August 95,000 47,500
37,500 66,250 90,000
The expected cash receipts are:
June = $37,500
July = $66,250
August = $90,000
Explanation:
The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.
Answer:
$13.25
Explanation:
The computation of the new book value per share is as follows
current market price per share is
= market value ÷ number of shares outstanding
= $936,000 ÷ 60,000
= 15.6
Now
number of shares to be issued is
= cost of the machine ÷current market price per share
= $498,000 ÷ $15.60
= 31923.07692
Now
The new book value per share is
= (current book value + amount raised from the issuance of shares ) ÷ ( current number of shares + number of shares issued for machinery purchase
= ($720,000 + $498,000 ) ÷ ( 60,000 + 31923.08 )
= $13.25
