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ki77a [65]
3 years ago
12

Marina Manufacturing is considering buying new equipment for its factory. The new equipment will reduce variable labor costs but

increase depreciation expense. Contribution margin is expected to increase from $250,000 to $300,000. Net income is expected to remain the same at $100,000. Compute the degree of operating leverage before and after the purchase of the new equipment and interpret your results.
Business
1 answer:
Luda [366]3 years ago
8 0

Answer:

2.50 and 3

Explanation:

The computation of the degree of operating leverage is shown below:

Degree of operating leverage = Contribution margin ÷ Net income

Before the purchase, it is

= $250,000 ÷ $100,000

= 2.5

And, after the purchase, it is

= $300,000 ÷ $100,000

= 3

So due to purchase of the new equipment the earning would be dropped by 1.2 times by dividing the 3 by 2.5 and there is a balance in increase and decrease in sales

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Company Earnings per Share Market Value per Share
pochemuha

Answer:

Price-Earnings Ratio = Market Value Per Share / EPS

Hilton  Price-Earnings Ratio = 176.40 / 12

Hilton  Price-Earnings Ratio = $14.7

SPG  Price-Earnings Ratio = 96.00 / 10.00

SPG  Price-Earnings Ratio =  $9.6

Hyatt  Price-Earnings Ratio = 83.75 / 7.50

Hyatt  Price-Earnings Ratio = $12.5

Accor Price-Earnings Ratio = 250.00 / 50.00

Accor Price-Earnings Ratio = $5.0

5 0
3 years ago
Space Fuel Inc. is considering establishing a new propellant depot to provide space vehicles a refueling point in their trek to
schepotkina [342]

Answer:

NPV = $55,894.45

Explanation:

the initial outlay of the project is $200,000

the salvage value is $10,000

useful life 10 years

annual costs $9,000

annual savings $50,000

luckily there are no taxes in space

we must determine the effective interest rate in order to be able to discount the future cash flows

(1 + 0.0478/6)¹² - 1 = 9.99%

the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000

net cash flow for year 10 = $41,000 + $10,000 = $51,000

using a financial calculator, the NPV = $55,894.45

7 0
3 years ago
Why does a minimum wage exist?
AleksandrR [38]

Answer:

A minimum wage exists so that when people are looking up their career field they see what they should get paid.

Explanation:

3 0
3 years ago
Read 2 more answers
Products are invented and revised by which department? marketing production research and development finance 2. what is the indu
Vanyuwa [196]

1. The answer is <u>"research and development".</u>


Research and development alludes to innovative exercises embraced by organizations or governments in growing new administrations or items, or enhancing existing administrations or products. Research and improvement constitutes the primary phase of advancement of a potential new administration or the creation procedure.  

Research and development are exceptionally hard to oversee, since the characterizing highlight of research is that the analysts don't know ahead of time precisely how to achieve the coveted outcome.  


2. The answer is <u>"capstone courier".</u>


Client buys and sensor organization money related outcomes are accounted for in an industry pamphlet called the Capstone Courier.  

Successful organizations will think about the Courier to comprehend the commercial center and discover openings. As the reenactment advances and systems are executed, organization results will start to shift.  


3. The answer is <u>"wage increases".</u>


Production department refers to a department that is straightforwardly associated with assembling items. Illustrations are the machining, completing, and collecting offices.  

Production is the useful territory in charge of transforming contributions to completed yields through a progression of generation forms. The Production Manager is in charge of ensuring that crude materials are given and made into completed merchandise successfully. He or she should ensure that work is completed easily, and must manage methods for making work more productive and more charming.  


4. The answer is <u>"Borrowing Long-term debt , Borrowing Short-term debt and Issuing Stock".</u>


Short-term debt alludes to any money related commitment that is either due inside a year time frame or due inside the current monetary year. The estimation of the transient obligation account is imperative while deciding an organization's execution.  

Notwithstanding any short-term debts due inside a year, there might be a segment of long-term debt that is likewise incorporated into this record. This part relates to installments that must be made on any long-term debt throughout the year.


5. The answer is <u>"marketing department".</u>


The Marketing Department assumes a fundamental part in advancing the business and mission of an organization.A advertising division advances your business and drives offers of its items or administrations. It gives the important research to recognize your objective clients and different groups of onlookers. Contingent upon the organization's various leveled association, a promoting executive, director or VP of advertising may be in charge.  

6. The answer is<u> "true".</u>


A proforma is being characterized as a standard record or proclamation in respects with back that could be alluded to as a technique utilized in methods for ascertaining the money related outcomes that are given.  

Proforma financial statements are utilized for a full scope of budgetary examination and ought to be made toward the start of each money related arranging cycle or at whatever point an association is thinking about a stage that could have a huge monetary effect.

8 0
3 years ago
Which of the following is subtracted from national income to get to personal income?
emmasim [6.3K]

Answer:

The answer is "Option A"

Explanation:

RE stands for retained income, In this system also requires the net income to be used in the accounting and cash flows, while the statement of money flow, which is not released as dividends of shareholder value, is used instead for new investments within the company, and other options are were wrong that can be described as follows:

  • Option B and option D are similar to each other because, both used for payment on personal and consumer loans, that's why it is not correct.
  • In option C, It is used in the calculation, that's why it is not correct.

3 0
3 years ago
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