BUSI 320 Learnsmart Assignment Chapter 5 Liberty University Complete Answer
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Cash break-even analysis is helpful in analyzing the ________ outlook of the firm, especially when the firm may be in trouble.
Assuming that the break-even point has been surpassed, a firm that utilizes a high degree of operating leverage will produce ________ profits than a firm that utilizes a lower degree of operating leverage
A company has sales of $2,250,000 (30,000 units at $75 each), variable costs of $25 per unit, fixed costs of $400,000, interest expense of $100,000, and a tax rate of 30%. What is the company’s degree of financial leverage?
Assuming the break-even point has been surpassed, a firm that utilizes a low degree of operating leverage will produce ________ profits than a firm that utilizes a lower degree of operating leverage.
During an economic downturn, when a firm’s sales volume is low, a firm that has high fixed costs may ?
At high levels of operation, the profit potential for a firm that is not highly leveraged is __ compared to that of a highly leveraged firm.
Besides depreciation, what other noncash items can be adjusted when using cash break-even analysis.
The closer DOL is computed to the company break-even point, the _____ DOL number will be due to a large percentage increase in operating income.
Company A and B both have sales of $1,200,000 (20,000 units at a price of $60 each). Company A has variable costs of $30 per unit, fixed costs totaling $400,000, and interest of $25,000. Company B has variable costs of $20 per unit, fixed costs totaling $600,000, and interest of $50,000. Company A’s DFL is and Company B’s DFL is .
At an EBIT level of $40,000 and a DFL of 2, a 1 percent increase in earnings will produce a percent increasing in earnings per share.
A company has fixed costs of $20,000, variable costs of $1.00 per units, and a price of $3.00 per unit, the company’s break-even point is _____ units.
Company A and B both have sales of $1,200,000 (20,000 units at a price of $60 each). Company A has variable costs of $30 per unit, fixed costs totaling $400,000, and interest of $50,000. Company B has variable costs of $20 per units, fixed costs totaling $600,000, and interest of $25,000. Which company has the greatest degree of combined leverage?
Company A has sales of $1,200,000 for 20,000 units sold, variable costs of $25 per unit, and fixed costs totaling $560,000. The company’s degree of operating leverage is .
A firm has fixed costs of $80,000 that includes a depreciation expense of $10,000 and a contribution margin of $0.70. So, the break-even point in units on a strictly cash basis is _______?
Firms that take a conservative approach to the use of operating leverage may increase variable costs in lieu of adding _____ costs.
Using EBIT, instead of Net Income in the return on assets ratio nulls the effects of the different capital structures and tax rates used by different companies. With this in mind, if company A has an EBIT of $15,000 and total assets of $199,000 what is the company earning on it’s assets? Give you answer in percent to two decimal places.
Which factors influence management's decision to follow a more aggressive approach to the firm's leverage or a more conservative approach?
leverage reflects the extent to which fixed assets and associated fixed costs are utilized in the business.
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