What are fixed costs? At an output level of 16,500 units, you havecalculated that the degree of operatingleverage is 2.80. The operating cash flow is$63,500 in this case. Ignoring the effect oftaxes, what are fixed costs? What will theoperating cash flow be if output rises to17,500 units? What will the operating cashflow be if output falls to 15,500 units?

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 4EB: Assume a company is going to make an investment in a machine of $825,000 and the following are the...

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At an output level of 18,000 units, you have calculated that the degree of operating leverage is 2.10. The operating cash flow is $46,500 in this case. Ignore the effect of taxes. a. What are fixed costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will the operating cash flow be if output rises to 19,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the operating cash flow be if output falls to 17,000 units? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
General Accounting
At an output level of 19,500 units, you have calculated that the degree of operating leverage is 2.92. The operating cash flow is $66,300 in this case. Ignoring the effect of taxes, what are fixed costs? Provide answer
At an output level of 19,500 units, you have calculated that the degree of operating leverage is 2.92. The operating cash flow is $66,300 in this case. Ignoring the effect of taxes, what are fixed costs? Question
At an output level of 19,500 units, you have calculated that the degree of operating leverage is 2.92. The operating cash flow is $66,300 in this case. Ignoring the effect of taxes, what are fixed costs?
Now suppose that annual unit sales, variable cost, and unit price are equal to their respective expected values—that is, there is no uncertainty. Determine the company's annual profit for this scenario. Round answer to a whole number, if needed.$
Assume the following (1) total sales = $200,000 (2) breakeven sales = $120,000, and (3) total fixed expenses = $50,000. Given these three assumptions, the margin of safety is: Multiple Choice $80,000. $30,000. $70,000. $150,000.
Management believes it can sell a new product for $6.50. The fixed costs of production are estimated to be $5,500, and the variable costs are $2.50 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Losses) 0 $ $ $ $ $ 500 $ $ $ $ $ 1,000 $ $ $ $ $ 1,500 $ $ $ $ $ 2,000 $ $ $ $ $ 2,500 $ $ $ $ $ 3,000 $ $ $ $ $ Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs,…
Management believes it can sell a new product for $7.50. The fixed costs of production are estimated to be $4,500, and the variable costs are $3.90 a unit. a. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar Enter zero if necessary. Use a minus sign to enter losses, if any Quantity Variable Costs Fixed Costs 0 500 1,000 $ $ $ S 2,500 $ 3,000 S 1,500 2,000 Total Revenue S Quantity $ $ Total Revenue $ $ $ $ $ $ $ $ $ S Fixed Costs $ $ Total Costs b. Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs, and profits (losses) to the nearest dollar. Enter zero if necessary Use a minus sign to enter losses, if any Variable…
As in the numerical example we discussed in our presentations, the inverse demand function for the depletable resource is given by P = 10-0.4qt, where P is the price in dollars and qt is the quantity in period t. The marginal cost of extraction is constant at $3. A total of 25 units of the resource is available to be allocated between two periods. Given a discount rate of 10%, answer the following questions: (a) In a dynamically efficient allocation, how much of the resource would be allocated to the first period and how much to the second period? (b) Given this discount rate, what would be the efficient price in the two periods? • First period price Po: 2.685 • Second period price P₁: 2.315 (c) Can you graphically represent the efficient allocation? (d) What would be the marginal user cost in each period? Can you explain the path of the MUC?
What is the breakeven sales in dollars if : Total sales, $120,000; Total variable cost, $ 48,000; Operating income, $12,000.

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