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SAP C_ARSOR_2404
SAP Certified Associate - Implementation Consultant - SAP Ariba Sourcing
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NEW QUESTION: 1
The management of Strings & All, Inc., a small, highly leveraged, electric guitar manufacturer, wants to reduce the company's degree of total leverage (DTL) to 2.0. Currently, the company's expected operating performance is as follows:
To obtain a DTL of 2.0, management must (all else constant):
A. reduce variable expenses by 30%.
B. increase variable expenses by 30%.
C. reduce variable expenses by 38.5%.
D. increase variable expenses by 38.5%.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
To obtain this result, we need to calculate the current variable costs, determine the variable costs that will result in a DTL ratio of 2.00, and calculate the percentage change.
Step 1: Calculate current variable costs (VC): VC = 0.6 * 500,000 = 300,000 Step 2: Calculate Variable costs needed to decrease the DTL to 2.0:
Rearranging the formula for DTL:
= (Sales - Variable Costs) / (Sales - Variable Costs - Fixed Costs - Interest Expense) results in: Variable Costs (VC) = Sales - (2 * Fixed Costs) - (2 * Interest Expense)
= 500,000 - (2*120,000) - (2*25,000) = 210,000
Step 3: Calculate percentage change:
VC = (300,000 - 210,000) / 300,000 = 0.30, or 30%.
ꢀ
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A. Select value-improving proposals for implementation
B. Review the status of MoV in an organization where MoV activities could be improved
C. Develop an Option Evaluation Matrix
D. Identify MoV study leaders
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NEW QUESTION: 3
A. Option C
B. Option F
C. Option D
D. Option A
E. Option B
F. Option E
Answer: A
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SAP C_ARSOR_2404 (SAP Certified Associate - Implementation Consultant - SAP Ariba Sourcing)
Questions and Answers : 347 Q&A Update On : January 3, 2019 File Format : PDF Windows Compatibility : Windows 10/8/7/Vista/2000/XP/98 Mac Compatibility : All Versions including iOS 4/5/6/7 Android : All Android Versions Linux : All Linux Versions Download C_ARSOR_2404 Sample Questions -
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