The firm's degree of operating leverage is 1.23. Operating leverage is the measure of the degree to which a firm or project incurs a combination of fixed and variable costs. Businesses have more leverage when they have more sales resulting in a high gross merger and less fixed and variable costs.
To solve: Change in EBIT percent / change in sales percent
Cheap labor and raw materials.
Margin generally occur when there is a capacity to produce more with cheap labor and enough raw material for the production.
In comparison to the developing countries, the capital investments flow from high wage core countries to low wage periphery regions. Wage employment is far less than the daily wage earners.
Labor changes occur in both the kind of wage rate and employment. Shifts take in case both high to low and low to high variations to maintain stability both between the production procedure, employment and labor ratio . All depends on the situation of the economy in a country.
To learn more about capital investments here,
brainly.com/question/13529977
#SPJ4
Autarky is a state that exists where the entity can survive with no external help or the global trade.
<h3>What is trade?</h3>
Trade is the scenario when the nation engaged in acquiring or selling goods or providing services from or to the outside nations.
- Autarky is the situation of being self independent or exercising the self rule. It is being applied to the political states, systems of economy, communities or states of the nation.
- When an entity can able to exist in the market with no global interference or any kind of external help, then that situation of a firm is tend to be an Autarky.
Therefore, the definition provided in respect of the term Autarky.
Learn more about the international trade in the related link:
brainly.com/question/27622280
#SPJ1
Answer:
Closing (the Sale).
Explanation:
The salesperson's objective is to obtain a purchase commitment from the prospect and create a customer during closing stage in the personnel selling process. Personal selling process starts with prospecting, pre-approach, approach and then presentation, followed by handling objectives and then closing process. In closing process, salesperson actually want the costumer to purchase the product, therefore, he or she tries to close the process as soon as possible by taking purchasing intention from the customer. This is the most important step in the whole process because this steps yields actual sales where all other steps help this step.
Answer:
1. $240
2. 12.5%
3. $168.75
Explanation:
1. Total cost per unit = Variable cost per unit + Fixed cost Per unit
= $150 + $90
= $240
Where ;
Variable costs per unit = Direct material +Direct labor + Overhead + Selling
= $100 + $25 + $20 + $5
= $150 per unit
Fixed costs per unit = Total fixed cost / Number of units produced
= ($470,000 + $105,000 + $325,000) / 10,000 units
= $900,000 / 10,000
= $90 per unit
2. Mark up percentage on Total cost = Mark-up / Total cost *100
= $300,000 / $2,400,000 * 100
= 12.5%
Where;
Total cost = Total cost per unit * Number of units produced
= $240 * 10,000 units
= $2,400,000
3. Selling price = Total cost per unit + Mark up
= $150 + ($150 * 12.5%)
= $150 + $18.75
= $168.75
