The degree of operating leverage of facitity with fixed costs ten million dollars ,variable costs $1000 per unit ,seling price of the unit $1400 and level of production 5000 unit degree of perating leverage: 0,19 time -0,25time - 0,32time

The degree of operating leverage of facitity with fixed costs ten million dollars ,variable costs $1000 per unit ,seling price of the unit $1400 and level of production 5000 unit degree of perating leverage: 0,19 time -0,25time - 0,32time

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 4P

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Question

choose the coreect answer?

1-The degree of operating leverage of facitity with fixed costs ten million dollars ,variable costs $1000 per unit ,seling price of the unit $1400 and level of production 5000 unit degree of perating leverage:

0,19 time

-0,25time

- 0,32time

2-Suppose that the current ratio is 0,6 and the current assets are $60000 therefor the value of the current liabilities is

$100000

3600

0,1

The investment policy aggressive is to reduce the volume of investment in working capital this policy leads to

A-increasing liquidity and correspondingly increasingly increasing profits and risks

b-reducing liquidity and correspondingly increasingly increasing profits and risks

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