![subject](/tpl/images/cats/ekonomika.png)
Assume Paper Mate is planning to introduce a new executive pen that can be manufactured using either a capital-intensive method or a labor-intensive method. The predicted manufacturing costs for each method are as follows:
Capital Intensive Labor Intensive
Direct materials per unit $5.00 $6.00
Direct labor per unit $5.00 $15.00
Variable manufacturing overhead per unit $7.00 $2.00
Fixed manufacturing overhead per year $3,140,000.00 $1,100,000.00
(a) Determine the annual break-even point in units if Paper Mate uses the:
1. Capital-intensive manufacturing method.
2. Labor-intensive manufacturing method.
(b) Management wants to know more about the effect of each alternative on operating leverage. Explain operating leverage and the relationship between operating leverage and the volatility of earnings.
Answer choices are either A or B.
A. They have little or no correlation because they are unrelated.
B. They are positively correlated, with increases in operating leverage accompanied by increases in the volatility of earnings.
(c) Compute operating leverage for each alternative at a volume of 250,000 units. Round your answers two decimal places.
![ansver](/tpl/images/cats/User.png)
Answers: 1
Another question on Business
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 08:00
Why do police officers get paid less than professional baseball players?
Answers: 2
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 21:30
Providing a great shopping experience to customers is one of the important objectives of purple fashions inc., a clothing store. to achieve this objective, the company has a team of committed customer service professionals whose job is to ensure that customers get exactly what they want. this scenario illustrates that purple fashions is trying to achieve
Answers: 1
![question](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 22:00
He interest rate effect is the change in real gdp caused by the federal reserve adjusting target interest rates. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in exports and imports, resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in investment spending and government purchases caused by changes in money demand. is the change in interest rates, caused by changes to government purchases.
Answers: 2
![question](/tpl/images/cats/ekonomika.png)
Business, 23.06.2019 10:00
In two or three sentences describe how open market operations change the money suppy
Answers: 3
You know the right answer?
Assume Paper Mate is planning to introduce a new executive pen that can be manufactured using either...
Questions
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/biologiya.png)
Biology, 22.07.2019 01:50
![question](/tpl/images/cats/mat.png)
Mathematics, 22.07.2019 01:50
![question](/tpl/images/cats/mat.png)
Mathematics, 22.07.2019 01:50
![question](/tpl/images/cats/fizika.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 22.07.2019 01:50
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 22.07.2019 01:50
![question](/tpl/images/cats/es.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 22.07.2019 01:50
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/istoriya.png)
History, 22.07.2019 01:50
![question](/tpl/images/cats/informatica.png)
Computers and Technology, 22.07.2019 01:50
![question](/tpl/images/cats/istoriya.png)
History, 22.07.2019 01:50
![question](/tpl/images/cats/biologiya.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/istoriya.png)