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Operating leverage is highest in groups that have a high share of constant working fees when it comes to variable operating costs.
Operating leverage is a value-accounting system that measures the diploma every day which a company or venture can increase working earnings by means of increasing sales.
Operating cost are the continuing expenses incurred from the everyday of walking a enterprise. working expenses encompass each expenses of goods bought and different running costs.
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Answer:
D) decrease; increase
Explanation:
Monetary appreciations and devaluations are common situations of capitalism in which countries use floating exchange rates. Basically, the exchange corresponds to the amount a currency can buy from another country's currency. When the dollar depreciates, it means that it would take more dollars to buy another currency, such as the Euro. Thus, the undervalued dollar is a stimulus for other countries to buy American products, as their money is worth more than the dollar. Therefore, exports will increase.
In contrast, in relation to the domestic market, the devaluation of the dollar tends to decrease the demand for the product. This is because with the depreciation of the dollar, the imported inputs for manufacturing production become more expensive, because it will take more dollars to buy the inputs. This cost increase is passed to the final price of the product. When price increases, the tendency is for demand to decrease.
Even in the case of products that do not use imported inputs in the production process, dollar depreciation will cause demand to decrease. This is because from the producer's point of view, it will be more profitable to produce for the foreign market, since the devaluation of the dollar makes American products become more competitive in the international market. This will have repercussions in the domestic market, since a smaller amount of the good will be supplied internally, which tends to raise prices. Faced with rising prices, demand tends to decrease.
Budget writers, just took a test that had the same question.
<u>Solution and Explanation:</u>
The dollar amount of dividends that Xerox must pay on this stock = $2,160,000
Working for the answer
It was given in the question that, company issued 300,000 shares of Series and the convertible preferred stock pays quarterly cash dividends at a rate of 8% per year
par value of $90 per share
SO amount of dividends that Xerox must pay on this stock
=2,160,000
amount of dividends that Xerox must pay on this stock =2,160,000
