1. What is Leverage? Is it beneficial or detrimental to a firm?
2. What are deuce simple decisions about leverage in a business that mustiness be made by management? What is the main trade-off that must be made in each of these two decisions?
3. What is operating leverage? What are the three main classes of be? What are some examples of these cost?
4. What is a contribution rim?
5. Given a Leveraged staunch that has mulish costs of $60,000, a unit price of $2, and variable costs per unit of $0.80: What is the break-even bar? What is the lolly or loss at this quantity?
6. What is the return or loss for the Levered Firm if 20,000 units are sold?
7. What is the profit or loss for the Levered Firm if 80,000 units are sold?
8. A ultraconservative Firm chooses not to operate at high degrees of operating leverage by substituting more overpriced 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 Conservative Firm if 20,000 units are sold?
10. What is the profit or loss for the Conservative Firm if 80,000 units are sold?
11.
Given the following 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 unit
* Which firm will have the better financial action at sales levels of 20 thousand, 30 thousand, 50 thousand, and 80 thousand units?
12. What is cash break-even depth psychology? When is it useful? What types of items are include in accounting 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 calculation?...If you want to get a abundant essay, order it on our website: Orderessay
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