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NEW QUESTION: 1
The management of Strings & All, Inc., a small, highly leveraged, electric guitar manufacturer, wants to reduce the company's degree of total leverage (DTL) to 2.0. Currently, the company's expected operating performance is as follows:
To obtain a DTL of 2.0, management must (all else constant):
A. increase variable expenses by 38.5%.
B. increase variable expenses by 30%.
C. reduce variable expenses by 38.5%.
D. reduce variable expenses by 30%.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
To obtain this result, we need to calculate the current variable costs, determine the variable costs that will result in a DTL ratio of 2.00, and calculate the percentage change.
Step 1: Calculate current variable costs (VC): VC = 0.6 * 500,000 = 300,000 Step 2: Calculate Variable costs needed to decrease the DTL to 2.0:
Rearranging the formula for DTL:
= (Sales - Variable Costs) / (Sales - Variable Costs - Fixed Costs - Interest Expense) results in: Variable Costs (VC) = Sales - (2 * Fixed Costs) - (2 * Interest Expense)
= 500,000 - (2*120,000) - (2*25,000) = 210,000
Step 3: Calculate percentage change:
VC = (300,000 - 210,000) / 300,000 = 0.30, or 30%.
ꢀ

NEW QUESTION: 2
DRAG DROP
Match the different RMC implementations of 3PAR RC to their descriptions.

Answer:
Explanation:

Explanation:

NEW QUESTION: 3
R98

Welcher Befehl liefert diese Ausgabe?
A. CDP-Nachbarn anzeigen
B. IP-Route anzeigen
C. IP-Schnittstelle anzeigen
D. Schnittstelle anzeigen
Answer: A

NEW QUESTION: 4
Which protocol is used with HiPath platforms for cross-linking and with workpoints?
A. TCP/IP
B. SCCP
C. CorNet
D. MGCP
Answer: C