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Soloha48 [4]
3 years ago
15

Suppose a company with high operating leverage is also operating at near capacity for all its fixed-cost resources. How could an

increase in sales volume result in decreasing economies of scale for this company?
Business
1 answer:
TiliK225 [7]3 years ago
8 0

Answer Explanation:

Operating leverage is the degree to which a firm is able to increase its income by increasing its revenue which is based on its fixed cost.

Economies of scales is the increase in output with the decrease in per unit cost.

In the question it states that a company has high operating leverage and operating at near capacity which means the company is using more fixed assets in comparison to its current assets. If the company uses more fixed assets which is by increasing sales volume then the economies of scales will be hindered because economies of scales is best utilized with fixed capital. Therefore, with the increase in sales volume the cost of per unit fixed assets will decrease, disturbing the economies of scales and resulting in decreasing economies of scale.

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Sally Smith incurred expenses of $800 in June which she paid in July. She declared these expenses on her June income statement.
Nitella [24]

Answer:

Accrual

Explanation:

The accounting principle of accrual means that you should register something when the fact that origins the right for the future payment/collecting occurs. It does not matter if the payment is done later, the fact that made you to pay was already done, so we apply accrual and say we already owe that money that we pay later.

In this example, Sally used the principle of accrual for the things in June that she later paid in July... but her expenses were origined in June, so they apply to June.

6 0
3 years ago
Suppose a large country experiences economic growth which results in a reduced willingness to trade. The country’s terms of trad
eimsori [14]

Answer:

The correct answer is letter "B": improve; rise.

Explanation:

Terms of Trade measures the efficiency of a country's trade. It is a ratio which compares the exports of a country with its imports. It is <em>calculated by dividing the export value by the import value, and by multiplying the result by one hundred (100)</em>. A terms of trade figure higher than 100, means a country exporting goods at a higher value than its imports.

<em>Given the case that there is no willingness to trade in an economy after a growth, the most possible scenario to take place is that the trade terms will </em>improve <em>as a result of the decrease in the demand of imports and assuming the level of exports keeps at the constant level that allowed the economic growth or if it even </em>rises<em>.</em>

4 0
3 years ago
A bed mart company is in the business of manufacturing beds and
vladimir1956 [14]

The maximum daily profit for the company is $860

<h3>What is an inequality</h3>

Inequality is an expression that shows the non equal comparison of two or more variables and numbers.

Let x represent the number of bed and y represent the number of pillow, hence:

4x + 2y ≤ 40    (1)

Also:

2x + 4y ≤ 32   (2)

From the graph, the solution is at:

(8, 4)

Profit = 80x + 55y = 80(8) + 55(4) = $860

The maximum daily profit for the company is $860

Find out more on inequality at: brainly.com/question/24372553

3 0
2 years ago
Variable costs A. are fixed per unit and vary in total as production levels change. B. are fixed in total as production levels c
Bumek [7]

Answer: Option A

Explanation: In simple words, Variable cost is that cost of the business that changes with level of production. Hourly wage rate of workers, electricity bill of factory are some of many examples of variable cost.

The electricity consumption is fixed per unit, but if the level of production rises the electricity bill also rises as more units will be consumed.

Hence, from the above we can conclude that the right option is A.

8 0
2 years ago
On November 1, 2017, Columbo Company adopted a stock-option plan that granted options to key executives to purchase 30,000 share
Harrizon [31]

Answer and Explanation:

The answer is attached below

4 0
2 years ago
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