Answer: Degree of Operating Leverage
A Tech = 2.75
Z Tech = 3
Explanation:
As defined in question itself,
Degree of Operating Leverage = ![1 + \frac{fixed\ cost}{Profit}](https://tex.z-dn.net/?f=1%20%2B%20%5Cfrac%7Bfixed%5C%20cost%7D%7BProfit%7D)
As here, it is provided that profit for both the companies are same amounting $4 million.
Although the fixed cost differ by $1 million.
A Tech Degree of operating Leverage = 1 +
= 2.75
Z Tech Degree of Operating Leverage = 1 +
= 3
This clearly demonstrates that A Tech will reach its break even faster than the Z Tech as the ratio of fixed cost to variable cost is lower in A tech in comparison to Z Tech.
Answer:
<u>Giselle should purchase points</u> to lower the interest rate of the mortage, this will make the cuota decrease.
Explanation:
163000 x20% = 32,600
163,000 - 32,600 = 130,040
current mortgage cuota:
![C \times \frac{1-(1+r)^{-time} }{rate} = PV\\](https://tex.z-dn.net/?f=C%20%5Ctimes%20%5Cfrac%7B1-%281%2Br%29%5E%7B-time%7D%20%7D%7Brate%7D%20%3D%20PV%5C%5C)
![C \times \frac{1-(1+0.0625/12)^{-30*12} }{0.0625/12} = 130,040\\](https://tex.z-dn.net/?f=C%20%5Ctimes%20%5Cfrac%7B1-%281%2B0.0625%2F12%29%5E%7B-30%2A12%7D%20%7D%7B0.0625%2F12%7D%20%3D%20130%2C040%5C%5C)
C= 800.68
800.68/ 2,986 = 0.2681 = 26.81%
this cuota exeeds the desired amount Giselle wants.
her couta can be as much as 2,986 x 25% = 746.5
<u>Giselle should purchase points</u> to lower the interest rate of the mortage, this will make the cuota decrease.
Answer:
D. decreases initially and then is horizontal.
Explanation:
A horizontal long run average cost curve reflects increase in cost proportionate to output, so the firm's long run average cost curve will fall initially and then become horizontal.
"If you send in the minimum payment, you will be charged a late fee."
This is an INCORRECT statement, because you will not be charged a late fee just for making the minimum payment. Minimum payments are not a good idea because you will be charged interest on the remaining amount and will have a harder time paying off the balance, but you will not be charged a late fee.