ou estimate that your cattle farm will generate $1 million of profits on sales of $5.7 million under normal economic conditions and that the degree of operating leverage is 8. a. What will profits be if sales turn out to be $5.0 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) b. What if they are $6.4 million? (Round your answer to 1 decimal place.)

ou estimate that your cattle farm will generate $1 million of profits on sales of $5.7 million under normal economic conditions and that the degree of operating leverage is 8. a. What will profits be if sales turn out to be $5.0 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) b. What if they are $6.4 million? (Round your answer to 1 decimal place.)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

See similar textbooks

Similar questions

You estimate that your cattle farm will generate $1 million of profits on sales of $5.7 million under normal economic conditions and that the degree of operating leverage is 8.a. What will profits be if sales turn out to be $5.0 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) b. What if they are $6.4 million? (Round your answer to 1 decimal place.)
You estimate that your cattle farm will generate $0.20 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 5. a. What will profits be if sales turn out to be $3.2 million? b. What will profits be if sales turn out to be $4.8 million? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
You estimate that your cattle farm will generate $0.30 million of profits on sales of $6 million under normal economic conditions and that the degree of operating leverage is 4. a. What will profits be if sales turn out to be $4.5 million? Note: Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions. Profit will ✔ Answer is complete and correct. Profit will decrease to $ b. What will profits be if sales turn out to be $7.5 million? Note: Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place. 0✔ million. to million.
You estimate that your sheep farm will generate 1.5 million of profits on sales of 4.4 million under normal economic conditions, and that the degree of operating leverage is 6.3. What will sales be if profits turn out to be 1.9 million? Enter your answer in millions, rounded to two decimal places. Number million
You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. a. What will profits be if sales turn out to be $1.5 million? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions.) Required: profit will to Millions b. What will profits be if sales turn out to be $4.5 million? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) Required: profit will to Millions
Operating Leverage. You estimate that your cattle farm will generate $1 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 8. What will profits be if sales turn out to be $3.5 million? What if they are $4.5 million? (LO3)
A project currently generates sales of $17 million, variable costs equal 40% of sales, and fixed costs are $3.4 million. The firm’s tax rate is 30%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $17 million to $18.7 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow by b. What are the effects on cash flow, if variable costs increase to 45% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow by
ou are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $ 76,000 immediately. If your cost of capital is 7%. What is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? Question content area bottom Part 1 The minimum dollar amount is $XXX enter your response here .
You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $79,000 immediately. If your cost of capital is 7.2%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? The minimum dollar amount is $ (Round to the nearest dollar) COO
As Financial Manager what would be your decision on assets and investment matters to meet profit maximization? Analyze carefully and encircle your best answer. A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs P35,000 and is expected to provide earnings over three years as described below. 1. Based on the profit- maximization goal, the financial manager would choose ASSET YEAR YEAR A. Asset 1 1 2 B. Asset 2 21,000 | 15,000 | 6,000 9,000 15,000 | 21,000 3,000 20,000 | 19,000 6,000 12,000 | 12,000 1 C. Asset 3 2 D. Asset 4 4
Pls solve all. If we consider the storage cost of $0.35/bu at the beginning, recalculate the following questions: 1. Suppose the elevator buys 100,000 bushels of corn on Nov 1 at $2.00/bu in cash market, and store the corn to sell in the cash market until Jun 1 at $2.30/bu. What is the elevators gain or loss in cash market? 2. On Nov 1, the elevator could sell corn futures contract at $2.50/bu and buy the contract back on Jun 1 at $2.4/bu. What is the elevators gain or loss in futures market? 3. Calculate the basis for both Nov 1 and Jun 1. 4. Calculate the total return of corn to the elevator through such hedging in the futures market? 5. What is the net profit/loss through above hedging in the futures market?
A project currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $28 million. The firm's tax rate is 40%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $14 million to $15.4 million? (Input the amount as positive value. Enter your answer In dollars not In mllons.) Cash flow increases by s 420,000 b. What are the effects on cash flow, if variable costs increase to 60% of sales? (Input the amount as positive value. Enter your answer In dollars not In mlllons.)