Finance Question???

mixmaster_matt

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Join Date: Aug 2003

Posts: 381
#1

Finance Question???

11-24-2004, 03:41 PM

This question is killing me.

At an output level of 10,000 units, you have calculated the degree of operating leverage is 3.5. The operating cash flow is $9,000 in this case. Ignoring the effect of taxes, what are fixed costs? What will the Operating Cash flow be if output rises to 11,000 units? If output falls to 9,000 units?

Ok, i got the first part to be $22,500. But I don't know what the hell to do next. I have looked in the book and the part of the equation of OCF=(P-v)xQ-FC. I found the answer in the back of the book to be $5,850 as the OCF but I have no idea how they got that and I need to know b/c we have a test on this stuff tonight. Anyone have any ideas what I need or if I am using the wrong formula.

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redfox

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#2

11-24-2004, 05:10 PM

what math class is that?

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itzkcatz

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#3

11-24-2004, 08:15 PM

Goodluck
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"mazdachic"

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#4

11-24-2004, 08:22 PM

I Hate Math........ Blah...........have Fun.........................

"mess with the mazda...... mess with the chick......."mazdachic"

I don't go looking for no trouble but somehow the trouble always finds me, Don't make me have you in the trauma center With your momma crying cause her only son is dying, She just don't know it's just your karma catching up cause I'm a Drama Setter
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mixmaster_matt

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#5

11-25-2004, 02:58 AM

not math, it is fundamentals of corporate finance...i got the answer before class, just got home from the bar...drunk...

2000 DX, Blue
Eibach Pro-Kit, MSP Struts, 16" Kosei's on Honkook Ventus HR-II's(205-45-16), MSP Exhaust, Injen CAI, MSP Strut Tower Bar, NGK Wires
2 JL Audio 10w3-d4's in a sealed box, Rockford 500s amp, 2 6x9 Pioneer Premier 4-ways, 2 6x8 Kenwood Excelon 3-ways, Rockford 301x amp, Pioneer Premier DEH-P650, Dynamat in some fun places.....
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lscrx

you let pickles out!

Join Date: Apr 2004

Posts: 2115
#6

11-26-2004, 01:03 AM

I hate math... that's why I withdrew

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