Questions from Corporate Finance

Q: At an output level of 45,000 units, you calculate that

At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. If output rises to 48,000 units, what will the percentage change in operating cash flow be? Will the ne...

Q: In the previous problem, suppose fixed costs are $175,000. What

In the previous problem, suppose fixed costs are $175,000. What is the operating cash flow at 43,000 units? The degree of operating leverage?Data from Problem 11:At an output level of 45,000 units, yo...

Q: Input area:

Input area:Fixed costs89000Units sold10400OCF127400New units sold11100Output area:Original DOL1.69858712715856%DQ0.0673076923076923%DOCF0.114327979712595New OCF141965.3846New DOL1.62691338625342

Q: At an output level of 17,500 units, you have calculated

At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.26. The operating cash flow is $78,000 in this case. Ignoring the effect of taxes, what are fixed cos...

Q: In the previous problem, what will be the new degree

In the previous problem, what will be the new degree of operating leverage in each case?Data from Problem 14:At an output level of 17,500 units, you have calculated that the degree of operating levera...

Q: Your firm is contemplating the purchase of a new $485,000

Your firm is contemplating the purchase of a new $485,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $35,000 at t...

Q: Consider a four-year project with the following information: Initial fixed

Consider a four-year project with the following information: Initial fixed asset investment = $575,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $29; var...

Q: You are planning to make monthly deposits of $475 into

You are planning to make monthly deposits of $475 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your...

Q: K-Too Everwear Corporation can manufacture mountain climbing shoes for $33.18

K-Too Everwear Corporation can manufacture mountain climbing shoes for $33.18 per pair in variable raw material costs and $24.36 per pair in variable labor expense. The shoes sell for $170 per pair. L...

Q: McGilla Golf has decided to sell a new line of

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $845 per set and have a variable cost of $405 per set. The company has spent $150,000 for a marketing study that dete...