Homework 7C
Question 1 1
/ 1 point
La Cucaracha Pest Control, Inc. is reviewing its financial
condition. The firm’s operating leverage is 2.84. The firm’s financial leverage
was of 2.55. What is the firm’s degree of combined (total) leverage of La
Cucaracha Pest Control, Inc. ?
Question 2 1
/ 1 point
Haunted Forest, Inc.is selling fog machines.
Use the following information about Haunted Forest, Inc. to
answer the following questions.
Average selling price per unit $316.
Variable cost per unit $214
Units sold 366
Fixed costs $17,113
Interest expense $4,993
Based on the data
above, what is the degree of total (combined) leverage of Haunted Forest, Inc.?
Round the answer to two decimals
Question 3 1
/ 1 point
Haunted Forest, Inc.is selling fog machines.
Use the following information about Haunted Forest, Inc. to
answer the following questions.
Average selling price per unit $336.
Variable cost per unit $213
Units sold 307
Fixed costs $15,366
Interest expense $3,708
Based on the data
above, what will be the resulting percentage change in earnings per share if
they expect units produced and sold to change -4.8 percent?
(You should calculate the degree of total (combined)
leverage first).
(Write the percentage sign in the “units” box).
Round the answer to two decimals
