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Ellis Sport Shop projects the following sales:



Ninety percent of Ellis' sales are on credit with 60 percent...

From the following income statement, calculate:

(a) Degree of financial leverage.
(b) Degree of operating leverage.
(c) Degree of combined leverage.

Income statement
Sales $440,000
TVC ...

Isn't it true that if you divide profit by shares outstanding you get your earnings per shares

I believe so

Under normal economic conditions, with a 45% probability of occurring, King can expect to earn a net income of $50,000 per year. In a mini-recession, at 25% probability, King will earn $20,000. In a...

ElectroWizard Company produces a popular video game called Destructo which sells for $32. Last year ElectroWizard sold 50,000 Destructo games, each of which costs $6 to produce. ElectroWizard...

Under normal economic conditions, with a 45% probability of occurring, King can expect to earn a net income of $50,000 per year. In a mini-recession, at 25% probability, King will earn $20,000. In a...

Ellis Sport Shop projects the following sales:



Ninety percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables...

I think what the book is showing you is different why of comparison

I agree the correct way is
150,000 .20 = 300,000
800,000 .50
500,000 .30
total expected sales level $850,000
The shows if...

Yes, so the final answer is
FC 232,000 232,000
P - VC, $8.00 - $2.20 = $5.80 = 40.000 units BE

I did it like this

800,000 x .50 expected outcome + 400,000 normal condition
(500,000) x .30 expected outcome + 150,000

Expected value of return = + 250,000

The book show substration from...

Rent is fixed cost
Labor variable
executive fixed
raw material variable
FC(rent) 120,000 divided by (P)$6-(VC)raw material .70 =
120,000 divided x = 22
5.30


This is what confuses me I am...

Company expects sales next year o be $1,500,000 if the economy is stron, $800,000 if the econy is teady, and $500,000 if the economy is weak. Mr. Sharpe believes there is a 20 percent probability...

Therapeutic Systems sells its products for $8 per unit has the follow costs:
Rent... $120,000
Factory Labor... $1.50 per unit
Executive under contract... $112,000
Raw material... $.70 per unit
...

How do you computer prior month purchases (dec) to get total material payments for Jan?

The Denver Corporation has forecast the following sales for the first seven months of the year:
January...

Sales expected to be 40,000 units for October. The company likes to maintain 15 percent of units sales for each month in ending inventory (i.e. the end of October)). Beginning inventory for October...

Sales of 3,000 units at $50 per units last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 10 per cent increase. Returned merchandise will represent...

Company has return on assets ration of 12 percent
A if debt to total assets ratio is 40 what is return on equity?
B if the firm had no debt, what would the return on equity ratio be?

Company has assets of $5,000,000 and turns over its assets 1.2 times per year. Return on assets is 8 percent. What is the firm's profit margin (return on sales)?

Earnings after taxes of $280,00 in 2006 with 200,000 saresof stock outstanding. The stock price was $30.80. In 2007, earnings after taxes increased to $320,000 with the same 200,000 shares...