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Use the following information to answer question 30 and 31. 2016 Revenues 12000 COGS 4000 SG&A...

Use the following information to answer question 30 and 31. 2016

Revenues 12000

COGS 4000

SG&A 2000

Depreciation 500

Operating Income 5,500

Debt 20,000

30. Assume this is a cyclical company. In the last recession sales fell 15%. Assume that in 2016 COGS was 75% variable. Fill in the chart below for your downside case.

31. Assume the biggest risk to this company is price declines of the product it sells. Assume the last time this happened the price declined 20%. Fill in the chart below for your downside case.

Revenues

COGS

SG&A

Depreciation

Operating Income

Debt

Please answer 31.

Expert Solution

jeff jeffy answered 1 year ago

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