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Kipish [7]
1 year ago
6

A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. B

ased on this, which company has the greater operating leverage?
Business
1 answer:
Ivahew [28]1 year ago
3 0

company B has the greater operating leverage

What is operating leverage?

A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.

The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.

Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.

Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.

Learn more about operating leverage with the help of given link:-

brainly.com/question/6238482

#SPJ4

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When Devin Spencer went to work for a printing shop, he thought he was going to have to join the union representing the shop. Ho
jekas [21]

Answer:

open

Explanation:

Since Devin is not required to pay anything or even join a labor union after employment, his workplace is called an open shop, according to the <em>right-to-work law</em>. In this kind of employment place, an employee's job <u>is not conditioned</u> by taking part in a union or paying any fees to it. This means that the employee can choose whether he/she wants to join a union or not

On the contrary, <em>closed shops</em> and <em>union shops</em> demand that their employees must be union members (or to become union members in a given period). Also, an agency shop is a type of workplace where employees can also decide whether they want to join a union or not. But, unlike in open shops, those who opt to remain "non-union" still have to pay a certain fee.

4 0
2 years ago
EXPLAIN THESE CHARACTERISTICS OF AN ENTREPRENEUR
nlexa [21]

Answer:

Explanation:

Creative-needs to come up with new ideas.

Innovative-needs to be advanced and original.

Flexible-Flexibility on the part of a worker could be to adjust the hours they work—coming in early, staying late, or working on an off day—to accommodate the needs of the company.

Goal-orientated-needs to do everything to meet their goal.

Persevering-needs to never give up even when its hard.

Please give me brainliest answer!!!

6 0
2 years ago
The table shown below gives the short-run total cost function Noel’s window cleaning firm. This firm competes in a perfectly com
lesya692 [45]

Answer:

profit maximizing output is 4; $28

Explanation:

Noel’s firm charges the market price for window washing jobs = $30/job

Marginal cost for the 5th unit of output:  

= Total cost from 5th unit - Total cost from 4th unit

= $129 - $92

= $37

At 5th level of output, the marginal cost is greater than the market price for window washing jobs.

Therefore, the profit maximizing output is 4.

Profit = (market price × output) - Total cost

        = ($30 × 4) - 92

        = $120 - $92

        = $28

4 0
3 years ago
Consider This) Susie purchased a nonrefundable ticket to a soccer match for $20. It will cost her $10 worth of gas and wear and
Nitella [24]

Answer:

The $20 ticket to the match.

Explanation:

The sunk cost would be the $20 ticket to the match.

6 0
2 years ago
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formul
Alexandra [31]

Answer:

$981,000 - Total Building Cost

Explanation:

To answer this question, we were told that the customer wants to build a moderate 3,800 square foot home. However, although it says with no utilities, utility cost will be applicable because it represents what is needed by the builders and engineers to get their work done on the vacant lot of land.

Therefore,  the cost to build = Administrative cost +  Building cost (moderate) + appliances cost + utilities cost

= $40,000 + (220 x 3800 square foot) + $45,000+ $60,000

=$40,000 + $836,000 + $45,000+ $60,000

= $981,000

6 0
3 years ago
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