company B has the greater operating leverage
What is operating leverage?
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.
The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.
Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.
Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.
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Answer:
The option is B. Project manager with input from systems analyst.
Explanation:
A project manager is an individual who has the overall responsibility for the successful initiation, planning, design, execution, monitoring, controlling and closure of a project.
The roles of a project manager include, but not limited to:
- Planning and Defining Scope
- Activity Planning and Sequencing
- Creating Charts and Schedules
However, Project Managers can not work alone, they will therefore work with experts and people who are skilled in their field. They will form a team that will report to the project manager, and work together to ensure the success of the project.
From the explanations above, we can conclude that the systems analyst will only provide input that will help the project manager in making decisions about the management of the project.
Answer:
The NPV = $1578.185602 rounded off to $1578.19
As the NPV is positive, the project should be accepted.
Explanation:
The Net Present Value or NPV is a tool used to evaluate projects. It is used with various other tools to decide whether to undertake a project or not. To calculate the Net Present Value or NPV, we take the present value of the cash inflows provided by the project and deduct the initial cost of the project. If the NPV is positive, we should proceed with the project and vice versa.
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial Cost
Where,
- CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on.
- r is the required rate of return
NPV = 3200 / (1+0.17) + 3200 (1+0.17)^2 + 3200 (1+0.17)^3 +
3200 (1+0.17)^4 + 5700 (1+0.17)^5 - 9800
NPV = $1578.185602 rounded off to $1578.19
Answer:
Interest revenue = $7800*8%/360*60
Interest revenue = $104
Date Journal Entry Debit Credit
Cash $7,904
Notes Receivable $7,800
Interest Revenue $104
Answer:A luxury car is meant to be shown and only people that are rich could afford a luxury car but a normal car is what you see on a daily basis and it's still a car but a common one.
Explanation:
