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Author Question: Gentech, Inc. is an integrated circuit (microchip) manufacturer based out of New Jersey. Its ... (Read 35 times)

Zoey63294

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Gentech, Inc. is an integrated circuit (microchip) manufacturer based out of New Jersey. Its principal products include microprocessors and motherboard chipsets. Selected financial statement values for Gentech are shown in the table, below. What is the degree of operating leverage for Gentech given the change in revenues from Year 1 to Year 2?

Gentech Inc. ($000s)
Year 1Year 2
Revenues$70,000$75,000
Cost of Goods Sold45,00048,500
SG&A13,00013,500
Depreciation3,0003,200
EBIT9,0009,800

◦ 0.13
◦ 1.17
◦ 1.00
◦ 1.24
◦ 0.75


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Marked as best answer by Zoey63294 on Apr 25, 2021

debra928

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Zoey63294

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


cpetit11

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Reply 3 on: Yesterday
:D TYSM

 

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