1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nat2105 [25]
3 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]3 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
You might be interested in
According to financial planners, the average retiree requires approximately 70% of their last year’s working salary (answer to #
Anna35 [415]

Answer:

Our answer is 2430798.798

Explanation:

. 70% of pre-retirement salary should be equal to the interest that we get from savings(5% of savings).

Therefore, 0.7 × 173628.4856 = 0.05×savings

==> savings = 2430798.798

3 0
3 years ago
A rule of nature that tells you what will happen under certain conditions is a
Naddik [55]

I guess the correct answer is Scientific Law.

Scientific Law is rule of nature that tells you what will happen under certain conditions.

5 0
3 years ago
Why is it good for businesses to join their local chamber of commerce?
Anit [1.1K]

Because it helps them finish whatever project they are working and helps them and thats it and plz give me thanks and brainliest if u can

7 0
3 years ago
Read 2 more answers
"_____ is a mechanism for gathering information about performance deficiencies after they occur."
Inessa05 [86]
Feedback Control <span>is a mechanism for gathering information about performance deficiencies after they occur.</span>
4 0
3 years ago
g On July 1, Alton Co. issued an $60,500, 10%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends
irakobra [83]

Answer:

The interest expense is $521  

Explanation:

The amount of interest expense for the fiscal year is the interest expense of 31 days which ,in other words the interest incurred only in the month of July ,calculated thus:

interest expense=days in the month/360days*interest rate*loan amount

interest expense=31/360*10%*$60,500=$ 521  

The interest expense for the current fiscal year rounded to the nearest dollar amount is $ 521  

8 0
3 years ago
Other questions:
  • If your uncle borrows $69,000 from the bank at 11 percent interest over the nine-year life of the loan. Use Appendix D for an ap
    13·1 answer
  • A study published in the Journal of the American Medical Association showed that postal workers who tested positive for drug use
    6·1 answer
  • ​commitments to make or receive payments in the future are made easier by money's function as a _____.
    11·1 answer
  • What are the 5 specific forces that are acting as stimulant for changes with relevant examples
    10·1 answer
  • Diversification cannot reduce market risk. <br> a. true <br> b. false
    13·1 answer
  • A watch manufacturing company has priced its goods at a rate which is higher than what other companies offer. the watches made b
    8·2 answers
  • A Metro City ordinance imposes a jail term, without a trial, on all vendors who operate in certain areas. A court would likely r
    15·1 answer
  • For a time, either R. J. Reynolds or Phillip Morris raised prices of cigarettes twice a year by about 50 cents per carton. The o
    11·1 answer
  • Novak Corp. has 6000 shares of 5%, $100 par value, cumulative preferred stock and 12000 shares of $1 par value common stock outs
    5·1 answer
  • At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $55,000 for accounts r
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!