Question

In: Finance

If United Snack Company has an annual interest of $18,000. calculate the degree of financial leverage...

If United Snack Company has an annual interest of $18,000. calculate the degree of financial leverage at 20,000 and 25,000 bags. with a cost of $26 per bag. 50lb bags at $0.18 per bag variable cost and $244 800 fixed cost of operation.

Solutions

Expert Solution

THERE IS A ERROR IN WRITING VARIABLE COST = IT IS PER lb AND NOT PER bag


Related Solutions

If the United Snack shop Company has an annual interest of 18,000. calulate the degree of...
If the United Snack shop Company has an annual interest of 18,000. calulate the degree of financial leverage at both 20,000 and 25,000 bags 20,000 bags and 25,000 bags interest $18,000. operation $244,800 50lb bags of peanuts at $0.18 per pound what is the degree leverage per 20,000 bags?
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
Terrible Clips has a degree of financial leverage of 2.45 and a degree of combined leverage...
Terrible Clips has a degree of financial leverage of 2.45 and a degree of combined leverage of 9.32. What percentage change will a 25 percent increase in sales have on EBIT?
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,...
The Sosa Company produces baseball gloves with a degree of financial leverage of 1.66 based on...
The Sosa Company produces baseball gloves with a degree of financial leverage of 1.66 based on the company’s income statement for 2004. What does that mean in its company's risk?
Degree of financial leverage   Northwestern Savings and Loan has a current capital structure consisting of $...
Degree of financial leverage   Northwestern Savings and Loan has a current capital structure consisting of $ 220 comma 000 of  15 % ​(annual interest) debt and 3 comma 000 shares of common stock. The firm pays taxes at the rate of 25 %. a. Using EBIT values of $ 81 comma 000 and $ 122 comma 000​, determine the associated earnings per share​ (EPS). b. Using $ 81 comma 000 of EBIT as a​ base, calculate the degree of financial...
Degree of financial leverage - Northwestern Savings and Loan has a current capital structure consisting of...
Degree of financial leverage - Northwestern Savings and Loan has a current capital structure consisting of $ 250,000 of 15 % ?(annual interest) debt and 3,000 shares of common stock. The firm pays taxes at the rate of 40 %. a. Using EBIT values of $ 76,000 and $116,000?, determine the associated earnings per share? (EPS). b. Using $76,000 of EBIT as a? base, calculate the degree of financial leverage? (DFL). c. Rework parts a and b assuming that the...
Degree of financial leverage   Northwestern Savings and Loan has a current capital structure consisting of $...
Degree of financial leverage   Northwestern Savings and Loan has a current capital structure consisting of $ 220 comma 000 of  14 % ​(annual interest) debt and 3 comma 000 shares of common stock. The firm pays taxes at the rate of 40 %. a. Using EBIT values of $ 79 comma 000 and $ 117 comma 000​, determine the associated earnings per share​ (EPS). b. Using $ 79 comma 000 of EBIT as a​ base, calculate the degree of financial...
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.)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT