If Korean Fried Chicken (KFC) has a 10.25% increase in sales, how much will its earnings per share (EPS) increase? Assume that KGB produces 145,000 units and it has an annual interest expense of $12,750.   A. 10.10% B. 10.67% C. 11.50% D. 12.59%

Q: price = 5.75 variable = 3.14 fixed costs = 57,500 if KFC has a 11.45% increase in sales, how much…

A: Total units produced = 157,450Price per unit = $5.75Variable cost per unit = $3.14Fixed costs =…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 20%, by how…

A: The contribution margin is calculated after deducting the variable cost from the revenue.

Q: The company has P3,000,000 sales.  The variable costs are equal to fifty cents for every peso of…

A: The percentage increase in net income can be calculated with the help of degree of financial…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 5%, by how…

A: The CPV or cost volume profit analysis helps in determining the effects on the operating income from…

Q: Felt Ltd. is currently selling 2,000 units of a product per month at a price of €300 each. An…

A: The maximum profit under different scenario can be computed for reaching the management decisions…

Q: Sunland Corporation sells a single product for $50. Its management estimates the following revenues…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Kyle Company had the following information pertaining to 2022: Profit P100,000 Sales P1,000,000…

A: RETURN ON INVESTMENT Return on Investment is Calculated by Dividing Total Profit from an Investment…

Q: Mexican Motors’ market cap is 600 billion pesos. Next year’s free cash flow is 15.0 billion pesos.…

A: The return received from an investment is known as the rate of return over a particular period of…

Q: Jacob Arrell Corporation has sales revenue of $9,500,000. The company's fixed costs total…

A: There is ratio called combined leverage which is the ratio of % change in EPS with respect to %…

Q: If sales increase from R80 000 per year to R120 000 per year, and if the operating leverage is 5,…

A: Net Income is defined as the total amount of the funds, which is earned by the business in the…

Q: Western Lumber Company expects to have free cash flow in the coming year of $4.25m and is expected…

A: Here, Expected Free cashflow=$4,250,000 Growth rate = 4% Cost of equity = 10% Pre-tax Cost of debt =…

Q: Berries Salad has current sales of RM10,000 and a profit margin of 5%. The firm estimates that sales…

A: Current sales = RM 10,000 Profit margin = 5% Growth rate = 4%

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 30%, by how…

A: Contribution margin can be defined as the difference between the total revenues and total variable…

Q: If KFC has a 10.85% increase in sales, its EBIT will increase by __________. Assume that KFC…

A: Degree of Operating leverage measure the percentage change in operating income (EBIT) for a given…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 10%, by how…

A: Increase in profit = current contribution margin x increase in sales % = 450000 x 10% = $45000

Q: Last year Dania Corporation's sales were $525 million. If sales grow at 11.3% per year, how large…

A: Future Value (FV) is the value if an amount is grown at a certain percentage every year.Information…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 10%, by how…

A: 1. FIXED EXPENSES : = $450,000 - $150,000 = $300,000   2. NEW CONTRIBUTION MARGIN IF SALE INCREASE…

Q: Zain glassware has made the forecast of sales shown in the following table. Also given is the…

A:

Q: Determine the percentage increase in annual operating income if Pharoah Corporation increases its…

A: operating profit is beneficial to knowing the decision-making process, controlling cost, increasing…

Q: Last year Rocco Corporation's sales were $700 million. If sales grow at 6.0% per year, how large (in…

A: The objective of the question is to calculate the future value of Rocco Corporation's sales given a…

Q: Sexton Corporation has projected the following sales for the coming year: Q4 $1,450 Sales 01 $ 940…

A: Accounts payables are those supplier accounts from whom goods has been purchased on credit, but…

Q: XYZ Company's single product has a selling price of $15 per unit The fxed expenses were $100,000…

A: Contribution = Fixed expense + Profit = $100,000 + $40,000 =$140,000 Let Sales be x Total sales =…

Q: What is Growers' PVGO?   a. $3.94   b. $5.84   c. $10.91

A: Present Value of Growth Opportunities (PVGO)PVGO illustrates the value that a company creates from…

Q: Nnana Ltd currently retains 60% of its earnings which are R6 a share this year. It earns an ROE of…

A: Retention ratio = 60%/100 = 0.60 in decimalsCurrent earnings per share = 6ROE = 30%/100 = 0.30 in…

Q: Mazon Inc. plans to sell 7,000 units each quarter next year. During the first two quarters each unit…

A: Sales revenue = Number of units sold x sales price per unit.

Q: 5.  A company is considering increasing the period of credit allowed to customers from 30 days to 45…

A: Accounts payable refers to money owed to a business by its vendors, whereas accounts receivable…

Q: eakeven sales in units will decrease by 4,000 units, how much will be the increase/decrease in…

A: The breakeven point is where the firm makes no profit or loss . In other words , the contribution…

Q: A firm needs $200,000 to start and expects   Sales                                $300,000…

A: Return on Owner's Investment = Net Income / Owner's equity Owner's equity in case 1 =$200,000…