You are  involved  in the planning  process for a firm that is  expected to have a large  increase in sales  for the next  year.  Which  type of firm  would benefit  most from a sales  increase; a firm  with  low fixed   costs and  high  variable costs or a  firm with high fixed costs and low  variable costs

Q: Analysts and investors often use return on equity (ROE) to compare profitability of a company with…

A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: What happens to the company’s return on investment (ROI) as sales increase? Explain.

A: Return on investment (ROI) = Net profit / Total assets

Q: a. What is the box annual sales volume for each area to be able to compete on a competitive…

A:

Q: Using the key value driver formula, what is the enterprise value in each scenario?

A: key driver formula scenario 1---->                                                      Value=…

Q: Trend analysis reveals whether a firm's performance over a given time period has improved or…

A: Comparison of the company's data with that of its previous year and with that of its peers helps to…

Q: A growing firm is contemplating switching from a FIFO to a LIFO cost flow assumption forinventories…

A: In case of rising prices, when the LIFO is applied the cost of goods sold will increase (as the…

Q: GohwaT has a client who has inquired about the valuation method best suited for comparison of…

A: The question is based on the concept of Accounting Theory.

Q: d next year to earn the same profit (€90,000) as last year? Assume the new plant is built and that…

A: Variable cost refers to the expense that changes with the change in the level of the output.

Q: Consider a company faced with a​ competitor's price reduction. Should the company also reduce price…

A: Answer :- In the current scenario, The company should not reduce its selling price per unit of…

Q: Assume that the manager of the club is able to reduce expenses by $2,880 without any change in sales…

A: Return on investment is given as follows:- ROI = (Net operating income/ Average operating assets)…

Q: Would the profit change associated with sales changes be larger or smaller if a firm increased its…

A: Operating leverage refers to fixed cost level associated to the operations of a company. A company…

Q: Is my explanation correct? When the shit in sales toward the lower contribution margin.  In the…

A: Dear student your explanation is correct. In the sales mix, if the shift in sales to a product that…

Q: o increase Sales and Sales Growth, the top Marketing Manager suggested to price products slightly…

A: Sales now are $80 million Required return "i" is 15% Initial investment required is $1 million…

Q: Which of the following statements is true? A In linear break-even analysis, the contribution margin…

A: As per the linear break-even model, the contribution margin per unit is the difference between the…

Q: Consider a company faced with a​ competitor's price reduction. Should the company also reduce price…

A:

Q: Suppose that you are the manager of a coffee shop, and you are planning to invest o new coffee-maker…

A: Income Statement : It is the financial statement to prepared to know the performance and net income…

Q: Saltwater Logistics Corp.’s domestic demand has matured and leveled off. Consequently, the firm is…

A: Please find the answer in the below step

Q: From a strategic management perspective, the primary reason a firm performs CVP analysis is to find…

A: CVP Analysis: CVP analysis is used to determined the how the changes in volume and costs effect the…

Q: A firm with a high degree of operating leverage: " will have a more significant shift in income as…

A: Degree of Operating Leverage is a relation of contribution margin to the net income.  Contribution…

Q: A paper published in the Harvard Business Review points out a new way to calculate economic profit…

A: Economic Profit: It is the profit after deducting opportunity cost from operating profit.

Q: you are the owner of a firm, and your firm is experiencing "economies of scale" in production. If…

A: Answer: If my firm is experiencing economies of scale, then as I hire more inputs, my output is…

Q: Ethical Situation: What Would You Do? Discussion Question As one of the newer district sales…

A: In the given situation, the new district sales manager is facing an ethical dilemma as to correctly…

Q: If company A has a higher degree of operating leverage than company B, then: Multiple Choice…

A: SOLUTION- Higher fixed costs lead to higher degrees of operating leverage; a higher degree of…

Q: Explain the concept of terminal growth rate and discuss why it is impossible for firms with good…

A: The terminal growth rate is the constant rate of growth at which a company’s expected free cash…

Q: A paper published in the Harvard Business Review points out a new way to calculate economic profit…

A: An economic profit/loss refers to the difference between the costs of all inputs used in production…

Q: As a manager, you have to choose between two options for new production equipment. Machine A will…

A:

Q: operating leverage factor t

A: Operating leverage factor = (Sales - Variable costs)/(Sales - Variable costs) - Fixed costs

Q: It has been suggested that when applied to the percentage growth rate in a business, the law of…

A: A business, during its initial stages and phases, sees more growth. With passage of time as the size…

Q: With the projected sales increasing it would be smart to how it going to the double declining method…

A: Depreciation:   Depreciation is a systematic reduction of cost of an asset (generally fixed asset).…

Q: “Benchmarking against other companies enables a company to identify the lowest-cost producer. This…

A: Definition:   Benchmarking:   Benchmarking is the process of selection of the industry’s best…

Q: If the firm is in a very competitive, mature industry, what effect will the competitive conditions…

A: Effects of competition on residual income Residual income is a function of net income and cost of…

Q: A firm currently has extra warehouse space that it is renting out to a 3rd party for $10,000 a…

A: Capital budgeting is a financial process of evaluating a capital project's profitability and…

Q: Highknob Co is thinking about introducing a new product.Below are the possible levels of unit sales…

A: The expected value is an estimated value of an investment at a future date. The expected value is…

Q: The firm's self-supporting growth rate is influenced by the firm's capital intensity ratio. The more…

A: The self supporting growth rate is also known as sustainable growth rate and it is the growth rate…

Q: Which of the following create value in an industry? (Select all that apply.) When value capture…

A: Value capture is the procedure for retaining some percentage of value provided through every…

Q: CVP analysis indicates that your start-up will break even with the current sales mix and price…

A: CVP stands for Cost Volume profit analysis is the one which is used for determining how the changes…

Q: How have the competitive, global, technological, andeconomic environments helped KlipTech to become…

A: The term "economic environment" refers to any external economic factors that influence consumer and…

Q: Tourism industry is one of the rapid growing industries around the globe. The boom of mass tourism…

A: Cost accounting helps in calculating the cost of the product or the service of the organisation.

Q: Ezekiel Enterprises recently made a large investment to upgrade its technology. While these…

A: As Ezekiel enterprises recently made a large investment to upgrade its technology. A part of net…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.