Absolute
Explanation:
Pure risk is call absolute risk because it is a category that is beyond human control.
The answer is A. Vocational Schools
1.1 billion? According to unicef 3 billion earn less than $2.50 so this seems like the appropriate answer.
Answer:
The answer is A. non-operating expense
Explanation:
As he operates a retail shop, such advertising is vital to attract customers to the shops and to make potential sales. We can't treat this expenses as administration or production expenses.
We consider this as non operational because advertising is not an operational part of the operations of a retail business. Moreover, we can't consider it as selling expenses because they are mostly incurred during the sales process.
Answer: a. 1.42
b) 2.74
c) 3.89
Explanation:
a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.
It is calculated with the formula,
= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)
= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)
= 1.42
b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.
The formula is,
=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax
= 301,000/110,000
= 2.74
c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.
It is calculated by multiplying DOL and DFL.
= 1.42 * 2.74
= 3.89
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