The firm's degree of operating leverage is 1.23. Operating leverage is the measure of the degree to which a firm or project incurs a combination of fixed and variable costs. Businesses have more leverage when they have more sales resulting in a high gross merger and less fixed and variable costs.
To solve: Change in EBIT percent / change in sales percent
Answer:
the Management section is completely controlled by only one person who is also a shareholder.
Explanation:
Based on the information provided within the question this will significantly increase when the Management section is completely controlled by only one person who is also a shareholder. In any situation where one person hold's all the power, corruption (fraudulent financial reporting) increases since the individual is able to blend in and not raise suspicion since they are the only one that is completing a certain task.
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Answer:the adjustment to record bad debts for the period will require a
Debit on
Bad debt expenses for $ 12,670 and a credit To Allowance for doubtful accounts for $ 12,670
Explanation:
Account receivables for uncollectibles= $13,900
Allowance for Doubtful Accounts = credit balance of $1230
Adjusting entry for bad debts expense =Account receivables - credit balance of $1230
= $13,900- $1,230
=$12,670
Adjusting entry for the record of bad debts expense
Accounts titles Debit Credit
Bad debt expenses $ 12,670
To Allowance for doubtful accounts $ 12,670
Answer:
4,494.68
Explanation:
Formula
Fc = Ic (1+i) ^ n
Where;
Fc= Final Capital
Ic= Inicial Capital
i= interest rate
n= period
In this particular case:
Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6
Fc = 4,494.68
Explanation:
The two types of goods / services where price competition works best are those classified by a market model of perfect competition and imperfect competition.
In perfect competition, there is a predominance of a homogeneous market, with the presence of many companies and without barriers to entry, where there is the possibility of free price competition, such as the food industry.
In imperfect competition, there is also the presence of many industries in the market, but there is a differentiation of products, which causes price competition but depending on the benefits, functionality and degree of differentiation of the good perceived by the consumer.
