Stromburg Corporation makes surveillance equipment for intelligence organizations. Its sales are $75,000,000. Fixed costs, including research and development, are $40,000,000, while variable costs amount to 30% of sales. Stromburg plans an expansion which will generate additional fixed costs of $15,000,000, decrease variable costs to 25% of sales, and also permit sales to increase to $93,000,000. What is Stromburg's degree of operating leverage at the new projected sales level?
A. 4.2086
B. 3.7831
C. 4.7288
D. 4.0668
E. 5.3436
Answer: C
You might also like to view...
After being accused of overcharging, Brian steps back and redirects the negotiation back to the issues that were initially being discussed. Brian is engaging in negotiation jujitsu.
Answer the following statement true (T) or false (F)
On April 1, 2018, Morton Company invests $50,000 in Johnson Company stock. Johnson pays Morton a $2,000 dividend on November 30, 2018. Morton sells the Johnson stock on December 31, 2018 for $54,500. Assume the investment is categorized as a short-term equity investment and that Morton does not have significant influence over Johnson.
Requirements: 1. Journalize the transactions for Morton's investment in Johnson's stock. 2. What was the net effect of the investment on Morton's net income for the year ended December 31, 2018.
Which structure or method is used to organize people and groups to enable them to focus on guest needs, wants, and expectations over all the organizational units?
a. cross-functional structure b. poka-yoke system c. blueprinting d. PERT/CRM
The ________ represents a summary statement of a firm's financial position at a given point in time
A) income statement B) balance sheet C) statement of cash flows D) statement of retained earnings