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NEW QUESTION: 1
Lincoln Lodging Inc. estimates that if its sales increase 10 percent then its net income will increase 18 percent. The company's EBIT equals $2.4 million, and its interest expense is $400,000. The company's operating costs include fixed and variable costs. What is the level of the company's fixed operating costs?
A. $1,200,000
B. $2,000,000
C. $450,000
D. $2,125,000
E. $666,667
Answer: A
Explanation:
Explanation/Reference:
Explanation:
We're given enough information to find both DFL and DTL.
DTL = .18/.10 = 1.8.
DFL = $2,400,000/($2,400,000 - $400,000) = 1.2
Given DTL = DFL x DOL, we can calculate DOL = 1.5. Recognizing S - VC - FC = EBIT, 1.5 = (S - VC)/$2,400,000 or S - VC = $3,600,000. The difference between (S - VC) and EBIT must represent fixed operating costs. Thus, FC = $3,600,000 - $2,400,000 = $1,200,000.

NEW QUESTION: 2
Which message type initiates the BGP session?
A. update
B. keepalive
C. notification
D. open
Answer: D

NEW QUESTION: 3

A. Option C
B. Option B
C. Option A
D. Option D
Answer: D

NEW QUESTION: 4
Which description of an edge-core-edge SAN topology is true?
A. Edge switches connect to storage devices and servers
B. Edge switches connect to each other via ISLs.
C. Core switches connect to storage devices and servers.
D. Core switches connect to servers.
Answer: B

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