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Flingers Inc.reveals the following information in their annual report for FY 2014.
They plan to aggressively pursue cost savings in the purchasing area for FY 2015 and expect to lower their cost of goods sold by 8% while maintaining the same level of sales.Calculate Flingers' leverage effect for 2014 and their expected leverage effect for 2015.Compare the two results for your leverage effect calculations and provide insight as their relative magnitude.
Government Subsidy
Financial assistance provided by the government to individuals, organizations, or industries to support activities deemed beneficial for the public or economy.
Soybeans Price
The market value or cost of soybeans, which can fluctuate based on supply, demand, and external market conditions.
Textbooks Shortage
A textbooks shortage refers to a situation where the demand for educational textbooks exceeds the available supply.
Printing Cost
The expenses associated with producing printed materials, such as ink, paper, and machine maintenance.
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