Answer:
The correct to the first fill in the blank is positive and answer to second fill in the blank is increase .
Explanation:
Cross price elasticity of demand can be defined as the measurement of change in quantity demanded one good that is in response to the change in price of another good.
Cross price elasticity of demand is said to be positive when the gods are substitute, which means that if there is an increase in price of one good than there will increase in demand of other good, same way if there is decrease in price of one good than there will be decrease in demand of other good.
Answer:
23.08%
Explanation:
The computation of the debt ratio is shown below:
Debt amount
= 2 million × 0.90
= 1.80 million
And,
Equity amount
= 2 million × 3
= 6 million
Now
debt ratio = debt amount ÷ (amount of debt + amount of equity)
= 1.80 million ÷ ( 6 million + 1.80 million)
= 23.08%
The company's degree of operating leverage is 1.29.
The degree of operating leverage(DOL) quantifies how much a company's operating income fluctuates in response to a change in sales.
The DOL ratio helps analysts determine the impact of changes in sales on company earnings.
A company with high operating leverage has a high proportion of fixed costs, which means that a large increase in sales can result in large changes in profits.
Using the formula for degree of operating leverage we get:
Degree of Operating Leverage = Contribution Margin/Operating Income
= $85200/$66200
= 1.29
Hence, The company's degree of operating leverage is 1.29.
Learn more about operating leverage:
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Answer:
Opportunity cost
Explanation:
NK is taking this opportunity to expand its missile programs at the expense of food production.
