As compared to companies with low operating leverage, companies with high operating leverage have.

1 answer:

5 0

Companies with a high degree of operating leverage (DOL) tend to have a higher percentage of fixed costs, which remain largely constant regardless of production volume, whereas companies with a low degree of operating leverage tend to have cost structures with a higher proportion of variable costs that are closely related to production volume.

A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. Businesses with high operating leverage generate revenues with low variable costs and large gross margins. Operating leverage is used to calculate a company's break-even point, which also helps identify the appropriate selling prices to pay all costs and turn a profit. Businesses with substantial operational leverage must pay a higher monthly amount of fixed costs regardless of whether they sell any units of product. The potential risk from forecasting risk, where a relatively modest inaccuracy in sales forecasting can be compounded into huge errors in cash flow predictions, increases with the level of operating leverage.

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True or False: Although price searchers can set their prices, the prices they can set are still affected by market conditions. T

RideAnS [48]

Although price searchers can set their prices for products, the prices they can set are however, still affected by market conditions: True.

<h3>What is price?</h3>

Price refers to the amount of money that is set by a seller and must be paid by a buyer (customer) to the seller (producer), so as to enable the acquisition of these goods or services.

Although price searchers can set their prices for the goods (products) they sell or service they render, the prices they can set are however, still affected by various market conditions such as:

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AlladinOne [14]

In some cases, supply curves are vertical, which means that for any price from 0 up to infinity, the quantity will stay the same.

This is very true for supply of an authentic painting in auctions, where there may only be 1 single painting, and people state the highest price they are willing to pay for the painting. Regardless of the price, there will only be 1 authentic painting for that price.

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irina1246 [14]

<span> The personal selling process includes the following steps: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up</span><span>
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<span>While prospecting the sales representative has contact with many people who are potentially buyers.</span>

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shmrock corporation recorded a right-of-use asset for 187,600 as a result of a finanec lease

<h3>What is lease?</h3>

A lease is a contract that requires the user to pay the owner for the use of an asset. Property, buildings, and vehicles are examples of leased assets. Leasing is also used for industrial or commercial equipment. A lease agreement is essentially a contract between two parties: the lessor and the lessee.

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Finance leasing, operating leasing, and contract hire are the three main types of leasing.

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