subject
Business, 06.10.2019 01:00 sdwhitneyhillis

Arnold vimka is a venture capitalist facing two alternative investment opportunities. he intends to invest $800,000 in a start-up firm. he is nervous, however, about future economic volatility. he asks you to analyze the following financial data for the past year’s operations of the two firms he is considering and give him some business advice. company name larson benson variable cost per unit (a) $ 16.00 $ 7.00 sales revenue (8,000 units × $25) $ 200,000 $ 200,000 variable cost (8,000 units × a) (128,000 ) (56,000 ) contribution margin $ 72,000 $ 144,000 fixed cost (24,000 ) (96,000 ) net income $ 48,000 $ 48,000 required use the contribution margin approach to compute the operating leverage for each firm. if the economy expands in coming years, larson and benson will both enjoy a 10 percent per year increase in sales, assuming that the selling price remains unchanged. compute the change in net income for each firm in dollar amount and in percentage. (note: since the number of units increases, both revenue and variable cost will increase.) if the economy contracts in coming years, larson and benson will both suffer a 10 percent ­decrease in sales volume, assuming that the selling price remains unchanged. compute the change in net income for each firm in dollar amount and in percentage. (note: since the ­number of units decreases, both total revenue and total variable cost will decrease.)

ansver
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 03:30, skylar1315
Used cars usually have options: higher depreciation rate than new cars lower financing costs than new cars lower insurance premiums than new cars lower maintenance costs than new cars
Answers: 1
image
Business, 22.06.2019 11:20, ebt2367
Money aggregates identify whether each of the following examples belongs in m1 or m2. if an example belongs in both, be sure to check both boxes. example m1 m2 gilberto has a roll of quarters that he just withdrew from the bank to do laundry. lorenzo has $25,000 in a money market account. neha has $8,000 in a two-year certificate of deposit (cd).
Answers: 3
image
Business, 22.06.2019 21:00, legazzz
Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations.
Answers: 1
image
Business, 23.06.2019 00:50, chancho3703
Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above
Answers: 1
You know the right answer?
Arnold vimka is a venture capitalist facing two alternative investment opportunities. he intends to...

Questions in other subjects:

Konu
Physics, 09.06.2021 16:00
Konu
Chemistry, 09.06.2021 16:00