You estimate that your cattle farm will generate $0.30 million of profits on sales of $6 million under normal economic conditions andthat 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 youranswers in millions.Profitwill✔ Answer is complete and correct.Profit willdecreaseto $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.tomillion.

Cost-Volume-Profit (CVP) analysis helps businesses understand how changes in costs, volume, and…

Answered: You estimate that your cattle farm will…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
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.)
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.)
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 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
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?
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
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 .
Suppose that you are working on a product development venture and your best guess about the cost and revenue is as follows: you expect to spend $2 million on inventories and marketing in the near future (so you can treat all the expenses as immediate cash outlays) but you expect to receive $2.3 million of revenue in two years. Note that the # is an expected amount that is an average of the optimistic scenarios and pessimistic scenarios. This is also simplified to make the set-up easy. What is your expected return on this venture (in terms of a per year rate of return? In other words, what is the IRR?
You are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $78,000 immediately. If your cost of capital is 7.4%, 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.)
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)
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

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