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xxMikexx [17]
1 year ago
11

Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows.

Business
1 answer:
11111nata11111 [884]1 year ago
4 0

Using the degree of operating leverage, the estimated impact on net operating income of a 5 % increase in sales is 6.45%.

The degree of operating leverage (DOL) measures how much a company's operating income varies in response to sales fluctuations.

The DOL ratio assists analysts in determining how changes in sales affect company earnings.

Because a company with high operating leverage has a high proportion of fixed costs, a significant increase in sales can result in significant changes in profits.

If sales increase by 5%, the calculation for increased Net Operating Income is as follows:

Increase in Net Operating Income = Sales Increase x Degree of Operating Leverage

                                                      = 5% x 1.29

                                                      = 6.45%

Hence, Using the degree of operating leverage, estimated impact on net operating income of a 5 % increase in sales is 6.45%.

Learn more about operating leverage:

brainly.com/question/9212451

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Nancy has a portfolio of two stocks. Stock A has an expected return of 8% and stock B has an expected return of 10%. Her funds a
dedylja [7]

Answer:

b. 8.92%

Explanation:

Calculation for the portfolio expected return

Using this formula

Portfolio expected return = (Stock A allocated fund x Stock A expected return) + (Stock B allocated fund x Stock B expected return)

Let plug in the formula

Portfolio expected return= (54%*8%) + (46%*10%)

Portfolio expected return=0.0432+0.046

Portfolio expected return=0.0892*100

Portfolio expected return =8.92%

Therefore the portfolio expected return will be 8.92%

7 0
3 years ago
when the federal government's expenditures for a year are greater than its revenue for that year, the difference is known as wha
Lera25 [3.4K]

Answer:

A budget deficit

Explanation:

A budget deficit arises when the governments spend more than it has collected.  The government 's main source of revenue is taxes and levies it imposes on businesses and individuals. Its expenses include salaries for public employees, social welfare, and expenditures on public goods and infrastructure development projects.

A budget deficit contrasts a budget surplus, which occurs when a government intends to spend less than it has collected. Budget deficits result in government borrowing from either the domestic or foreign markets.  A balanced budget is when the collected revenues match the planned expenditures.

8 0
3 years ago
Which characteristic places people at a higher risk for trying illicit drugs?
mestny [16]
<span>being frequently exposed to drugs would be one of the characteristics.
The exposure could be caused by living on the same neighborhood where the drugs syndicates focus their operation on, Or simply by socializing (hanging out) who use the illict drugs as a form of recreation, which will give us a peer pressure to bow down and follow the habbit.
</span>
4 0
3 years ago
If a management team wishes to undertake efforts specifically aimed at helping the company meet or beat the investor-expected in
dusya [7]

Boom general operating profits in all four geographic areas -- the resulting growth in working earnings will improve general net income and assist increase the EPS, using the business enterprise's stock fee upward.

Due to the fact, that the boom in EPS can bring about an elevated and strong dividend, and thus can have an impact on the investors to buy the stocks, resulting in a boom in stock prices.

The inventory price is a relative and proportional price of an organization's worth. consequently, it only represents a percent alternate in an organization's market cap at any given factor in time. Any percentage adjustments in an inventory fee will bring about the same percent trade in a company's marketplace cap.

A percentage fee is the rate of an unmarried proportion of a number of saleable equity shares of an organization. In layman's terms, the stock price is the best amount someone is willing to pay for the inventory, or the bottom amount that it can be bought for.

Learn more about company's stock price here: brainly.com/question/25818989

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5 0
1 year ago
According to the terminology associated with changes in currency values, which of the following choices is the case when a curre
patriot [66]

Answer:

C) devaluation and revaluation

Explanation:

Devaluation and revaluation is the way that government changes the exchange rate of it's currency in relation to others.

Devaluation is the reduction of the exchange rate of a countrie's currency usually against the United States dollar. This reduces the currency value in relation to the foreign currency.

Revaluation on the other hand is when a country increases the exchange rate, making the value higher against foreign currency.

6 0
3 years ago
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