1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Law Incorporation [45]
4 years ago
7

he degree of leverage concept is designed to show how changes in sales affect earnings before interest and taxes (EBIT) and earn

ings per share (EPS). If a 10 percent increase in sales causes EPS to increase from $1.00 to $1.50 and if the firm uses no debt, then what is its degree of operating leverage?
Business
1 answer:
Greeley [361]4 years ago
3 0

Answer: 5

Explanation:

The measure used to evaluate a change in company 's operating income as a result of relative change in sales is called degree of operating leverage of the company. The operating leverage has two components that is fixed cost and variable cost.

.

Operating income of a company is denoted as EBIT, that is, earnings before interest and tax.

.

FORMULA = \frac{percentage\ change\ in\ EBIT}{percentage\ change\ in\ sales}

                = \frac{50}{10} = 5

note :-

percentage change in EBIT = \frac{1.5-1}{1}= 50%

You might be interested in
Which of the following dimensions of e-commerce technology involves the integration of video, audio, and text marketing messages
scoray [572]

The dimension of e-commerce technology involving integration of video, audio, and text marketing messages into a single marketing message and consumer experience is: Richness.

E-commerce is the business performed at an online platform. It involves the interaction between the buyer and seller online for the business to be accomplished. There can be three types of e-commerce: business-to-business, business-to-consumer and consumer-to-consumer.

Richness in e-commerce is defined as the amount of content and the message it is able to deliver to the customers online. If the customers are greatly influenced by the content of the website, the website is considered to have more richness.

To know more about e-commerce, here

brainly.com/question/14157556

#SPJ4

6 0
2 years ago
A graph titled U S Unemployment Rate from 1961 to 2011 has Year on the x-axis, from 1961 to 2011, and Percentage unemployed on t
almond37 [142]

Answer: 1. Decreasing

               2. Increasing

Explanation: i guess on it my guy

5 0
3 years ago
Read 2 more answers
The practical application of techniques and knowledge is called __________.
castortr0y [4]
The practical application of techniques and knowledge is called D. TECHNOLOGY.

Technology is defined as a branch of knowledge that deals with the creation and used of technical means to improve everyday life. 

Knowledge gained from industrial arts, engineering, applied and pure science were put to practice by the creation of technological products.



7 0
3 years ago
When the regulator sets a price that a firm cannot exceed over the next few years, the regulator is enforcing:?
Likurg_2 [28]
<span>This is a price cap regulation. Because the firm cannot go over a certain price, the price is said to be capped. Regulations like this prevent firms from overcharging their customers, and promote good business ethics. It may slow the growth of the firm, but the cost comes at the benefit of the customer.</span>
7 0
3 years ago
Put a joke below if I laugh you get brainiest
Vanyuwa [196]

Answer:

no no don't touch me there, no no that's my no no square. Me singing this but they declared it dead.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Raguel Corporation reported net income of $101,000 during the current calendar year. As of January 1, the company had 200,000 sh
    12·1 answer
  • Andrea lost her job as an accountant because her company gave the contract for keeping accounts to a firm in Asia. The company d
    9·2 answers
  • Things were terrific at x bank on elm street until an unfortunate incident occurred. before the incident, the bank had installed
    10·1 answer
  • Jiyaing is an hr manager at a research firm in china, and her company has decided to open a branch in the united states. jiyaing
    15·1 answer
  • Which kind of business organization does not allow for profit sharing?
    13·1 answer
  • Performance Bicycle Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make
    6·1 answer
  • Choose one or more:A.Nonunion jobs pay better.B.A more desirable job might entice you to accept a lower wage.C.Working for a par
    10·1 answer
  • You invest in a project that has a depreciable asset. The asset is depreciable under the 5year MACRS category. The depreciation
    10·1 answer
  • Choose the term that best matches the description given.
    14·1 answer
  • Financial incentives paid to health care organizations to encourage focus on models of care that increase quality at a reasonabl
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!