Question
In: Finance
At an output level of 9,000 units, you have calculated that the degree of operating leverage...
At an output level of 9,000 units, you have calculated that the degree of operating leverage is 1.3. The operating cash flow is $15,300 in this case.
a. Ignoring the effect of taxes, what are fixed costs?
b. What will the operating cash flow be if output rises to 10,500 units?
c. What will the operating cash flow be if output falls to 7,000 units?
Solutions
Expert Solution
a. Fixed Cost
b. Operating cash flow if output rises to 10500
unit
c. operating cash flow be if output falls to 7,000 units
Working note
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jeff jeffy answered 4 months agoRelated Solutions
At an output level of 16,000 units, you have calculated that the degree of operating leverage...
At an output level of 16,000 units, you have calculated that the
degree of operating leverage is 1.6. The operating cash flow is
$32,000 in this case.
Required:
(a)
Ignoring the effect of taxes, what are fixed costs? (Do
not round your intermediate calculations.)
(Click to
select)$21,500$26,000$19,200$22,900$18,550
(b)
What will the operating cash flow be if output rises to 17,000
units? (Do not round your intermediate
calculations.)
(Click to
select)$43,000$39,500$37,800$34,250$35,200
(c)
What will the operating cash flow...
At an output level of 12,400 units, you have calculated that the degree of operating leverage...
At an output level of 12,400 units, you have calculated that the
degree of operating leverage is 2.70. The operating cash flow is
$46,000 in this case. Ignore the effect of taxes. What will be the
new degree of operating leverage for output levels of 13,400 units
and 11,400 units? (Do not round intermediate calculations.
Round your answers to 2 decimal places, e.g., 32.16.)
13,400 units
11,400 units
Degree
of operating leverage
At an output level of 17,000 units, you have calculated that the degree of operating leverage...
At an output level of 17,000 units, you have calculated that the
degree of operating leverage is 2.20. The operating cash flow is
$64,000 in this case. Ignore the effect of taxes. What will be the
new degree of operating leverage for output levels of 18,000 units
and 16,000 units? (Do not round intermediate calculations. Round
your answers to 2 decimal places, e.g., 32.16.)
At an output level of 18,000 units, you have calculated that the degree of operating leverage...
At an output level of 18,000 units, you have calculated that the
degree of operating leverage is 2.10. The operating cash flow is
$46,500 in this case. Ignore the effect of taxes.
a. What are fixed costs? (Do not round intermediate calculations
and round your answer to the nearest whole number, e.g., 32.)
b. What will the operating cash flow be if output rises to
19,000 units? (Do not round intermediate calculations and round
your answer to 2 decimal places,...
At an output level of 15,000 units, you have calculated that the degree of operating leverage...
At an output level of 15,000 units, you have calculated that the
degree of operating leverage is 2.61. The operating cash flow is
$57,000 in this case. Ignore the effect of taxes. What will be the
new degree of operating leverage for 16,000 units and 14,000 units?
(Round your answers to 4 decimal places. (e.g.,
32.1616))
14,000
units
16,000
units
Degree of operating leverage
At an output level of 62,000 units, you calculate that the degree of operating leverage is...
At an output level of 62,000 units, you calculate that the
degree of operating leverage is 3.70. Suppose fixed costs are
$280,000. What is the operating cash flow at 56,000 units? (Do not
round intermediate calculations and round your final answer to the
nearest whole number, e.g., 32.) Operating cash flow $ What is the
new degree of operating leverage? (Do not round intermediate
calculations and round your final answer to 3 decimal places, e.g.,
32.161.) Degree of operating leverage
At an output level of 45,000 units, you calculate that the degree of operating leverage is...
At an output level of 45,000 units, you calculate that the
degree of operating leverage is 2.79. Fixed costs are $175,000.
a. What is the operating cash flow at 43,000 units? (Do not
round intermediate calculations and round your answer to the
nearest whole number, e.g., 32.)
b. What is the degree of operating leverage? (Do not round
intermediate calculations and round your answer to 3 decimal
places, e.g., 32.161.)
The degree of operating leverage can be calculated as:
The degree of operating leverage can be calculated as:
What is meant by the term operating leverage? How is the degree of operating leverage calculated?....
What is meant by the term operating leverage? How is the degree of operating leverage calculated?.
What are the assumptions that underlie CVP analysis?
Calculate the degree of operating leverage, degree of financial leverage, and degree of total operating leverage given:
Calculate the degree of operating leverage, degree of financial leverage, and degree of total operating leverage given: Revenue grows from $200 to $230 EBIT grows from $50 to $60 NI grows from $20 to $28
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