Answer:
The answer is C) 1.25
Explanation:
Operating Leverage= (operating income + fixed expenses) / operating income
Operating Leverage= ($7,200 + $1,800) / $7,200= 1.25
Answer:
The correct answer is (A)
Explanation:
Soft drink manufacturing industry faces a high threat of substitutes. Not many soft drink brand exit the market but many new companies and brand enter. Similarly, that is the reason why prices of soft drink do not fluctuate as compare to other food items. The competitive environment in the soft drink industry creates a high threat of substitutes.
Answer:
long-term capital loss 10,000
Explanation:
80,000 purchase
(40,000) accumulate depreciation
40,000 net book value
30,000 sales price
-10,000 loss
This is a long-term capital loss because the assets was in the company possesions for a longer time than 12 months.
Answer:
Barter; for trying to coordinate trades
Explanation:
The barter is the system where the goods or services are exchanged with another goods or services. Here no money involvement is there
Only goods or services are exchanged with the different good or services
So it is a complete non-adequate mechanism and it should be tried for coordinating the trades
Therefore the above option should be considered
