chapter 13 hw - Akbar Bhojani 105882655 Chapter 13 Review...

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Akbar Bhojani 105882655 Chapter 13 Review Questions: 2, 3, 4, 7 Problems: 13-1, 13-2, 13-3, 13-4, (13-5 a,b,c only), 13-8, 13-9, 13-14 2)Business risk is determined by the uncertainty about a company operating income.  The volatility of sales triggers business risk.  The business risk is a combination of sales  volatility and the degree of operating leverage.  3) Financial Leverage is the additional volatility of net income caused by the presence of  fixed sot funds in the firms capital structure.   4)Home depot, and Best buy 7) Because too little debt could lead to more tax which would cause less net income 13-1 A) Fixed Costs 2300 VC 5.75 Sales Price 50 Break Even Point 51.977 4 b) Fixed Costs 1610 VC 5.75 Sales Price 45 Break Even Point 41.0191 1 13-2
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A) Total Revune if 30 of each sold – 8100 B) Total Cost if 30 of each sold- 90 combined – 1350 C) Total Revune if 10 of deluxe, 15 advanced, and 35 basic sold – 4525
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chapter 13 hw - Akbar Bhojani 105882655 Chapter 13 Review...

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