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NEW QUESTION: 1
Bell Brothers has $3,000,000 in sales. Its fixed costs are estimated to be $100,000, and its variable costs are equal to fifty cents for every dollar of sales. The company has $1,000,000 in debt outstanding at a before-tax cost of 10 percent. If Bell Brothers' sales were to increase by 20 percent, how much of a percentage increase would you expect in the company's net income?
A. 21.50%
B. 15.66%
C. 19.24%
D. 18.33%
E. 23.08%
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Step 1 Find Degree of Total Leverage (DTL)
DTL = (S-VC)/(S-VC-F-I) = ($3,000,000-$1,500,000)/($3,000,000-$1,500,000-$100,000-$100,000
1.1538.
Step 2 Find percentage increase in net income:
% Change NI = (0.20)(DTL) = (0.20)(1.1538) = 0.2308 = 23.08%.
NEW QUESTION: 2
How should a sales specialist find information about power requirements for the IBM DS8884 while away from the office?
A. IBM Storage Partner Guide
B. E-Config
C. Compete Center
D. IBM SSIC
Answer: D
NEW QUESTION: 3
A. CREATE TABLE Customer (SourceID int NOT NULL PRIMARY KEY CLUSTERED, CustomerID int NOT NULL UNIQUE, CustomerName varchar(255) NOT NULL);
B. CREATE TABLE Customer (SourceID int NOT NULL IDENTITY, CustomerID int NOT NULL IDENTITY, CustomerName varchar(255) NOT NULL);
C. CREATE TABLE Customer (SourceID int NOT NULL, CustomerID int NOT NULL, CustomerName varchar(255) NOT NULL, CONSTRAINT PK_Customer PRIMARY KEY CLUSTERED (SourceID, CustomerID));
D. CREATE TABLE Customer (SourceID int NOT NULL, CustomerID int NOT NULL PRIMARY KEY CLUSTERED, CustomerName varchar(255) NOT NULL);
Answer: C
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