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Ugo [173]
3 years ago
13

Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income sh

ould increase by about:
Business
1 answer:
Svet_ta [14]3 years ago
6 0

Answer:

21.9%

Explanation:

Given that

Operating leverage = 7.3

Increase in sales  = 3%

According to the given situation, the computation of net operating income is shown below:-

Increase in operating income  = Operating leverage × Increase in sales

= 7.3 × 3 %

= 21.9%

Therefore for computing the increase in operating income we simply applied the above formula.

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Quizlet Inter-organizational relationships are simple transactions that occur between two or more organizations. True or False
Pavlova-9 [17]

Answer:

True

Explanation:

In simple words, Relatively persistent flows of capital transfers and interactions between two or several entities are termed inter-organizational connections. These relationships are considered to be risky and often results in superior returns. It helps two firms to operate in a ritualistic partnership combined which does not force them to combine into a common company.

6 0
3 years ago
Classify each of the investments in assets as either permanent or​ temporary:
Katarina [22]

Answer:

1. A is temporary

2. B is permanent

3. C is temporary

Explanation:

1. A is temporary because these Valentine's day card are sold seasonally. That is at a particular time of the year. It's inventory is not for a permanent basis or for a long period of time.

2. Acquiring a new forklift is a permanent inventory because the equipment will stay in the company for a long period of time, for as long as it continues to serve the purpose for which it was acquired. This makes it a life asset.

3. The Increase in account receivable do due to expansion in customer base is for a short term due to goods sold on credit therefore they are temporary.

5 0
4 years ago
Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm ex
AnnyKZ [126]

Answer:

They should not make the change because the price of the stocks will decrease.

Explanation:

the current price of the stocks using the perpetuity formula = dividend / required rate of return

current price with current capital structure = $5.64 / 0.123 = $45.85

if the company changes its capital structure by increasing debt, the price of the stocks will be

$5.92 / 0.136 = $43.53

since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.

4 0
3 years ago
In 2010, bad freezes destroyed a large portion of Florida's grapefruit crop. Explain what happened in the grapefruit market usin
lutik1710 [3]

Answer: Please refer to Explanation

Explanation:

The Grapefruit market will experience an acute shortage of grapefruits because the bad freeze destroyed most of the crop that was going to be supplied.

This shortage in supply will force the price up and therefore lead to a drop in Demand as a lot of people will decide that they can't spend the new amount.

This scenario would lead to an increase in the Equilibrium price because the supply curve will be forced to the left and the new intersect with the Supply curve will be higher. The Equilibrium Quantity will also reduce because of the shortage that is being experienced as a result of a large portion of the grapefruits being destroyed.

In the graph I attached, S2 refers to the supply curve AFTER the bad freezes. Notice how the price went up to P2 and the Quantity dropped to Q2.

If you need any clarification do comment. Cheers.

8 0
3 years ago
Which market classification includes people who intend to use or benefit from products and do not buy them to make a profit?
yuradex [85]

Answer:

consumers

Explanation:

this are called the consumers ,they buy for their own use ,they dont intend to use it to make profit or resell it but instead they buy it for their own consumption and benefit

7 0
3 years ago
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