The degree of operatingleverage is calculated by the formular
(sales - variable cost) / (sales - fixed cost - variable cost).
In the given question,
sales = $2,000,000
variable cost = $1,100,000
fixed cost = $750,000
The degree of operating leverage is (2,000,000 - 1,100,000) / (2,000,000 - 750,000 - 1,100,000) = 900,000 / 150,000 = 6.
Therefore, the degree of operating leverage is 6.
I take my time to reflect on how I treat people. I meditate so that I can truly know how I feel.
If the price of labor falls, the supply of goods rises and the prices of those goods fall.
If labor costs go down, it will cost less for a business to make products so they will make more and supply will go up. When supply goes up, prices tend to fall.
Answer:
The correct answer is letter "A": the effects of labor unions on wages.
Explanation:
Personnel economics is applying economic and mathematical approaches and econometric and statistical strategies to traditional human resource management issues. Personnel economics deals with employees' employment, compensations, training, and management.
