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ehidna [41]
2 years ago
14

RST Company produces a product that has a selling price of $10 per unit and variable cost of $6 per unit. The company's fixed co

sts are $30,000. If the company sells 15,000 units, the degree of operating leverage is
Business
1 answer:
Ne4ueva [31]2 years ago
4 0

The e degree of operating leverage of RST Company given its price, costs and quantiy sold is 2.

<h3>What is the degree of operating leverage?</h3>

The degree of operating leverage (DOL) measures the sensitivity of a company's operating income to changes in the demand.

DOL = [Q(P - V) ] /[ Q(P - V) - F]

  • Q = quantity
  • P = price
  • V = variable cost
  • F = fixed cost

[15000(10 - 6)] / [15000(10 - 6) - $30,000]

60,000 / 30,000 = 2

To learn more about the degree of operating leverage, please check: brainly.com/question/23684386

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Each extra worker produces an extra unit of output up to six workers. After six, no additional output is produced. Draw the tota
Dmitry_Shevchenko [17]

Answer:

attached is the diagram

Explanation:

Each extra worker produces an extra unit of output, is said to be the marginal production of an extra worker employed

marginal production  :

change in total production / change in labor = ΔTp / ΔL

Average production = Tp / L

Tp = total production ,  L = number of labor

To draw the Total product of labor , average product labor and marginal product labor curves starting from zero labor

0 worker : Total product = 0, average product labor = 0 , marginal = 0

1 worker : Total product = 1, average product = 1 , marginal = 0

2 worker : Total product = 2, average product = 1, marginal = 1

3 workers: total product = 3 average product = 1, marginal = 1

4 workers: Total product = 4, average product = 1, marginal = 1

5 workers : Total product = 5 average product = 1, marginal = 1

6 workers : total product = 6 average product = 1 , marginal = 1

7 workers : total product = 7 , average product = 0.85, marginal = 0

8 workers : total product = 8, average product = 0.75 marginal = 0

7 0
3 years ago
What is the change due if a $5 bill is tendered for a charge of $4.21? The change in dollars and cents would be $ a0.
Yuri [45]

Answer: $0.79.

Explanation:

Given that,

Tendered bill = $5

Bill charged = $4.21

Therefore,

The change due is calculated by subtracting bill charged from tendered bill.

Change due = Tendered bill - Bill charged

                     = $5 - $4.21

                     = $0.79

Hence, change in dollars would be $0.79.

8 0
3 years ago
Pinnacle Financial Services managers meet annually to create a list of potential future complications and plan how to respond to
Virty [35]

Answer: contingency

Explanation:

Contingency planning is a form of planning that is used by an organization in order to plan ahead in case an event occurs. Contingency plans can also be called a 'Plan B' due to the fact that it's an alternative action in case things does not go as planned.

Therefore, based on the question, Pinnacle is practicing contingency planning.

7 0
3 years ago
If Hazel decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, dur
statuscvo [17]

Answer: Planning

 

Explanation: Planning refers to the process of setting goals and procedures and determining the need of resources to accomplish those goals.

In the given case, Hazel has already set her goal of providing the best ice cream in the market. Now she needs to set the procedures of how she can do so in an ethical manner. She has to determine the processes and rules she need to make to achieve the objective of ethical culture in her organisation.

Hence from the above we can conclude that in the planning phase.

8 0
3 years ago
Esme Inc., a manufacturer of cosmetics, ran an ad campaign in which it claimed that Esme's "Vivid" range of water-proof mascara
Pie

Answer:

The answer is D. Puffery.

Explanation: When an advertisement is being made, certain boastful and exaggerated claims can be made by a company about the superiority and uniqueness of their product.

This claim is termed as Puffery.

Puffery is defined as advertising or promotional content that makes exaggerated or boastful statements about a product or service that are based on opinion rather than something that can be measured.

Puffery in advertising is done based on the chance that no reasonable person would presume the exaggeration to be literally true.

This is what Esme Inc. has done by claiming that its mascara is the best in the world, and also gives ten times more volume to the eyelashes. This is an exaggerated claim.

6 0
3 years ago
Read 2 more answers
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