The pretax operating cash flow of Sandhill Motors declined so much during the recession of 2008 and 2009 that the company almost defaulted on its debt. The owner of the company wants to change the cost structure of his business so that this does not happen again. He has been able to reduce fixed costs from $489,000 to $304,000 and, in doing so, reduce the Cash Flow DOL for Sandhill Motors from 3.1 to 2.4 with sales of $1,070,000 and pretax operating cash flow of $230,000. If sales declined by 30 percent from this level, how much more pretax operating cash flow would Sandhill Motors have with the new cost structure than under the old? (Round answer to nearest whole dollar, e.g. 5,275.) dhill Motors would have $ more pretax operating cash flow with the new cost structure than under the old
The pretax operating cash flow of Sandhill Motors declined so much during the recession of 2008 and 2009 that the company almost defaulted on its debt. The owner of the company wants to change the cost structure of his business so that this does not happen again. He has been able to reduce fixed costs from $489,000 to $304,000 and, in doing so, reduce the Cash Flow DOL for Sandhill Motors from 3.1 to 2.4 with sales of $1,070,000 and pretax operating cash flow of $230,000. If sales declined by 30 percent from this level, how much more pretax operating cash flow would Sandhill Motors have with the new cost structure than under the old? (Round answer to nearest whole dollar, e.g. 5,275.) dhill Motors would have $ more pretax operating cash flow with the new cost structure than under the old
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The pretax operating cash flow of Sandhill Motors declined so much during the recession of 2008 and 2009 that the company
almost defaulted on its debt. The owner of the company wants to change the cost structure of his business so that this does not
happen again. He has been able to reduce fixed costs from $489,000 to $304,000 and, in doing so, reduce the Cash Flow DOL for
Sandhill Motors from 3.1 to 2.4 with sales of $1,070,000 and pretax operating cash flow of $230,000. If sales declined by 30 percent
from this level, how much more pretax operating cash flow would Sandhill Motors have with the new cost structure than under the
old? (Round answer to nearest whole dollar, e.g. 5,275.)
dhill Motors would have $
more pretax operating cash flow with the new cost structure than under the old
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The pretax operating cash flow of Sandhill Motors declined so much during the recession of 2008 and 2009 that the company
almost defaulted on its debt. The owner of the company wants to change the cost structure of his business so that this does not
happen again. He has been able to reduce fixed costs from $489,000 to $304,000 and, in doing so, reduce the Cash Flow DOL for
Sandhill Motors from 3.1 to 2.4 with sales of $1,070,000 and pretax operating cash flow of $230,000. If sales declined by 30 percent
from this level, how much more pretax operating cash flow would Sandhill Motors have with the new cost structure than under the
old? (Round answer to nearest whole dollar, e.g. 5,275.)
dhill Motors would have $
more pretax operating cash flow with the new cost structure than under the old
eTextbook and Media
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