finance bullshit

finance bullshit - Evan D'Agostino ID#106003714 BUS 330 1...

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Evan D’Agostino October 17, 2007 ID#106003714 BUS 330 1. Break even analysis allows the firm to determine the level of operations it will break even or earn zero profit, also determine relationship between volume, costs, and profits, and helps the management that at current costs of products how many numbers of units must be sold to at least recover the cost of producing the product. 2. The automobile industries are a highly leveraged company they see a much larger increase on the income with increased sales than does a conservative company. Degree of Operating Leverage, an automobile company is at an extreme risk of financial losses if they do not sell anything as opposed to a more conservative firm. But as their sales increase substantially, they are going to make a much larger income compared to the conservative firm once they pass the break even. What could cause a difference in the use of their financial leverage would be if the demand for automobiles decreased. 3.
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This note was uploaded on 05/16/2008 for the course BUS 330 taught by Professor Nugent during the Spring '08 term at SUNY Stony Brook.

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finance bullshit - Evan D'Agostino ID#106003714 BUS 330 1...

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