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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 38.5%.
B. increase variable expenses by 38.5%.
C. increase variable expenses by 30%.
D. reduce variable expenses by 30%.
Answer: D
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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NEW QUESTION: 2
Which of the following would be the BEST indicator that an organization is appropriately managing risk?
A. Risk assessment results are within tolerance
B. A penetration test does not identify any high-risk system vulnerabilities
C. The number of security incident events reported by staff has increased
D. The number of events reported from the intrusion detection system has declined
Answer: A
NEW QUESTION: 3
Which best describes a Cloud deployment model that relies on interoperability between Cloud providers?
A. InterCloud
B. Hybrid Cloud
C. Community Cloud
D. Multi-Cloud
Answer: A
NEW QUESTION: 4
When using Amazon SQS how much data can you store in a message?
A. 2 KB
B. 16 KB
C. 8 KB
D. 4 KB
Answer: C
Explanation:
With Amazon SQS version 2008-01-01, the maximum message size for both SOAP and Query requests is 8KB.
If you need to send messages to the queue that are larger than 8 KB, AWS recommends that you split the information into separate messages. Alternatively, you could use Amazon S3 or Amazon SimpleDB to hold the information and include the pointer to that information in the Amazon SQS message.
If you send a message that is larger than 8KB to the queue, you will receive a MessageTooLong error with HTTP code 400.
Reference: https://aws.amazon.com/items/1343?externalID=1343