subject
Business, 31.10.2021 05:00 eminh5145

The following sales and cost data (in thousands) are for two companies in the transportation industry: Company ACompany B AmountPercent of SalesAmountPercent of Sales Sales$ 150,000100%$ 150,000100% Variable costs75,0005060,00040 Contribution margin$ 75,00050%$ 90,00060% Fixed costs7,500 30,500 Operating profit$ 67,500 $ 59,500 Required: 1-a. Calculate the degree of operating leverage (DOL) for each company. 1-b. If sales increase from the present level, which company benefits more

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 08:20
Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above
Answers: 2
question
Business, 22.06.2019 12:00
In mexico, many garment or sewing shops found they could entice many young people to work for them if they offered clean, air conditioned work areas with high-quality locker rooms to clean up in after the work day. typically, traditional garment shops had to offer to get workers to apply for the hard, repetitive, and somewhat dangerous work. a. benchmark competitive wages b.compensating differentials c. monopoly wages d. wages based on human capital development of each employee
Answers: 3
question
Business, 22.06.2019 12:10
Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?
Answers: 2
question
Business, 22.06.2019 14:00
Which of the following would be an accurate statement about achieving a balanced budget
Answers: 1
You know the right answer?
The following sales and cost data (in thousands) are for two companies in the transportation industr...
Questions
Questions on the website: 13722359