The balance sheet of Flo's Restaurant showed total assets of $560,000, liabilities of $184,000 and stockholders’ equity of $426,000. An appraiser estimated the fair value of the restaurant assets at $665,000. If Alice Company pays $905,000 cash for the restaurant, what is the amount of goodwill?

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?