Can someone help me please ?
OceanGate sells external hard drives for $288 each. Its total fixed costs are $45 million, and its variable costs per unit are $173. The corporate tax rate is 41%. 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? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
b. What will be the percentage decline in profits if the economy enters a recession? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
c. Calculate the operating leverage of this firm? (Round your answer to 2 decimal places.)
Can someone help me please ? OceanGate sells external hard drives for $288 each. Its total...
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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...
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....
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?