What is the degree of operating leverage of majestic collectibles can produceMajestic Collectibleskeepsakes that will be sold for $75 each.Non-depreciation fixed costs are $1,200per year, and variable costs are $55 perunit.What is the degree of operating leverageof Majestic Collectibles when sales are$8,250?

To calculate the degree of operating leverage, we need to first calculate the contribution margin…

Answered: can produce Majestic Collectibles…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 4P

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Majestic Collectibles can produce keepsakes that will be sold for $75 each. Non-depreciation fixed costs are $1,200 per year, and variable costs are $55 per unit. What is the degree of operating leverage of Majestic Collectibles when sales are $8,250? Accurate answer
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If TechCor has fixed cost of $60,000 variable costs of $1.20/unit, a sale price/unit of $7 and depreciation expense of $25,000 what is its cash break even in units?
A proposed project has fixed costs of $108,000 per year. The operating cash flow at 6,800 units is $96,600. Ignore the effect of taxes. a. What is the degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) b. If units sold rise from 6,800 to 7,300, what will be the new operating cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If units sold rise from 6,800 to 7,300, what is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
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Question A .Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs are $2,000 per year, and variable costs are $35 per unit. The initial investment of $4,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 10%. What is the NPV break-even level of sales if the firm’s tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
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Break-even analysis (S10.2) Assume a product can be sold for $80 each. Non-depreciation fixed costs are $1,000 per year, and variable costs are $60 per unit. The initial investment of $3,000 will be depreciated straight-line over its useful life of five years to a final value of zero, and the discount rate is 10%. What is the accounting break-even level of sales if the firm pays no taxes? O O O 75 80 70 85
Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 438.00 per unit Variable costs 198.00 per unit Fixed costs 680,000 per year Assume that the projected number of units sold for the year is 4,150. Consider requirements (b), (c), and (d) independently of each other. Required: What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? omplete this question by entering your answers in the tabs below. Required A Required B…

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can produce Majestic Collectibles keepsakes that will be sold for $75 each. Non-depreciation fixed costs are $1,200 per year, and variable costs are $55 per unit. What is the degree of operating leverage of Majestic Collectibles when sales are $8,250?