OceanGate sells external hard drives for $104 each. Its total fixed costs are $35 million, and...
OceanGate sells external hard drives for $104 each. Its total fixed costs are $35 million, and its variable costs per unit are $68. The corporate tax rate is 31%. If the economy is strong, the firm will sell 4 million drives, but if there is a recession, it will sell only half as many.
a. What will be the percentage decline in sales if the economy enters a recession?
b. What will be the percentage decline in profits if the economy enters a recession?
c. Calculate the operating leverage of this firm?
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OceanGate sells external hard drives for $104 each. Its total
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OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million and...
OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million and its variable costs per unit are $140. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession it will sell only half as many. What is the firm’s degree of operating leverage? If the economy enters a recession, what will be the firm’s after-tax profit?
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Check my work OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its variable costs per unit are $140. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many. a. What will be the percentage decline in sales of the economy enters a recession? 05:52) Percentage decline in sales % ences b....
Help Save & Exit Submit Check my work OceanGate sells external hard drives for $280 each. Its total fixed costs are $40 million, and its variable costs per unit are $230. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many a. What will be the percentage decline in sales if the economy enters a recession? Percentage decline in...
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