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1 year ago

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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The first paragraph or part of a business letter is the

Whitepunk [10]

Answer:

introduction

Explanation:

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5 0

3 years ago

Baker traded a building used in her business for some new land. Baker originally purchased the building for $50,000 and it had a

Fittoniya [83]

Answer:

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

Explanation:

Step 1: Determine the initial loss/gain in value of the building

initial loss/gain=original purchase price-adjusted basis

where;

original purchase price=$50,000

adjusted basis=$30,000

replacing;

initial loss/gain=50,000-30,000=$20,000

initial loss in value=-$20,000

Step 2: Determine the loss or gain from the exchange

loss/gain=35,000-30,000=$15,000

gain=$15,000

Step 3: Determine other additional costs

Costs=loss=-$5,000

Step 4: Determine the net gain/loss

net gain/loss=-20,000+(15,000)+(-5,000)=-$10,000

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

8 0

4 years ago

What is service marketing meaning

lesya692 [45]

Example when a person goes to a dentist he use the services of the dentist and returns with a relief. In the process he does not get any physical commodity but still he has consumed a service. Core goods providers provide a significant service component as part of their businesses.

The American Marketing Association defines services marketing as an organisational function and a set of processes for identifying or creating, communicating, and delivering value to customers and for managing customer relationship in a way that benefit the organisation and stake-holders.

3 0

3 years ago

Logan Corporation issues 40,000 shares of $50 par value preferred stock for cash at $60 per share. In the stockholders' equity s

SpyIntel [72]

Answer:

c. under both the capital stock and additional paid-in capital sections

Explanation:

In the given question, the corporation issued 40,000 shares for $50 par value and for cash $60 per share

So, it affects the two accounts, one is preferred stock and the second is additional paid-in capital.

The preference stock should be increased by $2,000,000 (40,000 shares × $50)

Whereas the difference of $400,000 (40,000 shares × $10) would be transferred to additional paid in the capital account

And, the preferred stock has come under a capital stock account that's why we considered both the things

4 0

3 years ago

Megan is a graduate student pursuing a course in business. Presented with the case of a company's unethical behavior, Megan wond

liberstina [14]

Answer:

B) should ask the CEO to step down because it has a greater obligation toward society.

Explanation:

The concept of value creation in a business is more than simply increasing profits, it is about creating value for the company's customers and society as a whole. This concept is best illustrated by engaging in practices that reduce pollution or other business decisions like not buying from foreign vendors that employ forced child labor. Sometimes certain business practices are so evil that they are outlawed, e.g. buying conflict or blood diamonds, but Belgian diamond markets are still full of them. The final decision is ours, and as customers we have the power to decide which companies we support.

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4 years ago