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Nat2105 [25]
2 years ago
8

2. An A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million, interest costs of $2 millio

n, and a 30 percent average tax rate. A) Compute its DOL, DFL, and DCL. B) What will be the expected level of EBIT and net income if next year's sales rise 10 percent? C) What will be the expected level of EBIT and net income if next year's sales fall 20 percent?
Business
1 answer:
tankabanditka [31]2 years ago
6 0

Answer:

A) DOL = 1.33 times; DFL = 1.80 times; and DCL = 2.4 times

B) Next years expected Earnings before interest and tax = $5.5 million; and Net years expected net income = $2.45 million

C) Next years expected Earnings before interest and tax = $2.5 million; and Net years expected net income = $0.35 million

Explanation:

Note: This platform did allow the explanation to be saved here as it was claiming it contains swearwords. Please, see the attached pdf file for the full answer and explanation.

Download pdf
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Cedar Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main mater
Anna007 [38]

Answer:

$29.00

Explanation:

Direct labor time standard consists of basic time plus allowance for breaks, downtime and rejections.

The direct labor standard cost per hour will be a combination of all factors relating to labor:

Carpenters' wages are $20.00 per hour.

Payroll costs are .............$3.00 per hour,

and benefits are .............$6.00 per hour.

Standard labor cost IS..$29.00 per hour.

7 0
3 years ago
If a U.S. citizen could buy £25,000 for $100,000, the rate of exchange for the pound would be
Natalka [10]

Answer:

<u>The rate of exchange for the £ is US$ 4</u>

Explanation:

1. Let's check the information provided to answer the question correctly:

Amount the U.S. citizen want to buy in £ = 25,000

Amount the U.S. citizen will pay in US$ = 100,000

2. Let's calculate the rate of exchange for the British pound £, this way:

Rate of exchange = Amount in US$/Amount in £

Rate of exchange = 100,000/25,000

<u>Rate of exchange = 4 US$ per £</u>

We can also express the rate for the US$, this way:

Rate of exchange = Amount in £/Amount in US$

Rate of exchange =25,000/100,000

Rate of exchange =  £ 0.25 per US$

5 0
3 years ago
During the great depression of the 1930s, u.s. real gdp fell by about ____ percent, in comparison to the ______ percent decline
leva [86]
27, 3.7 is the correct answer....
4 0
3 years ago
Public speaking
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The answer to your question is B.
8 0
3 years ago
Riverbed Company sells goods that cost $320,000 to Ricard Company for $407,000 on January 2, 2020. The sales price includes an i
Alecsey [184]

Answer:

a) Journal entries to record the sale on January 2, 2020:

Debit Accounts Receivable with $407,000

Credit Sales Account with $368,500

Credit Deferred Revenue (Installation Fee) with $38,500

Being sales of goods and installation services.

b) Income Statement for 1st Quarter of 2020

Sales  -  $368,500

Installation Fee - $19,250

Total Income - $387,750

less cost of sales - $320,000

Net Income - $67,750

c) The revenue Shaw should recognize in relation to the sale to Ricard is $387,750 (goods and accrued installation fee).  The installation fee to be recognized is for 3 months only.

Explanation:

The installation fee is for 6 months.  Therefore, 3 months' worth of fee will be recognized in the income statement ending on March 31, 2020.

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2 years ago
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