Finance

Chapter 5 - run and Financial Leverage 1. What is Leverage? Is it in effect(p) or detrimental to a steady? 2. What are the Tempter simple decisions about leverage in a line of work that mustiness be made by management? What is the briny trade-off that must be made in individually of these two decisions? 3. What is operating leverage? What are the three important classes of be? What are some examples of these cost? 4. What is a theatrical role rim? 5. Given a Leveraged staunch that has mulish be of $60,000, a whole price of $2, and versatile costs per unit of $0.80: What is the break-even bar? What is the lolly or waiver at this meter? 6. What is the return or neediness for the Levered Firm if 20,000 units are interchange? 7. What is the profit or loss for the Levered Firm if 80,000 units are change? 8. A ultraconservative Firm chooses not to operate at high degrees of operating leverage by substituting more overp riced variable costs for automated plant and equipment. This firm has fixed costs of $12,000, a unit price of $2, and variable costs per unit of $1.60: What is the break-even quantity? What is the profit or loss at this quantity? 9. What is the profit or loss for the nonprogressive Firm if 20,000 units are sold? 10. What is the profit or loss for the bourgeois Firm if 80,000 units are sold? 11.

Given the chase instruction: * Profit (Loss) = Units(P - VC) - FC * Leveraged Firm * Price = $2.00 per unitFC = $60,000 VC = $0.80 per unit * Conservative Firm * Price = $ 2.00 per unitFC = $12,000 VC = $1.60 per uni! t * Which firm will mystify the better financial action at sales levels of 20 thousand, 30 thousand, 50 thousand, and 80 thousand units? 12. What is cash break-even knowledge psychology? When is it useful? What types of items are include in account statement break-even analysis but excluded from cash break-even analysis? 13. What is Degree of Operating Leverage (DOL)? Does it matter where we start a DOL computer science?...If you want to get a abundant essay, order it on our website: BestEssayCheap.com

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