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Monica [59]
3 years ago
13

Which of the following scenarios demonstrates the leverage effect on net operating income due to the existence of fixed costs?

Business
1 answer:
morpeh [17]3 years ago
7 0

Answer:

C) A 25% increase in sales resulting in a 30% increase in net operating income.

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soldier1979 [14.2K]

Answer:

d

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

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Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

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2 years ago
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yulyashka [42]
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3 years ago
On July 1, 2020, Indigo Co. pays $9,400 to Sweet Insurance Co. for a 2-year insurance policy. Both companies have fiscal years e
aliya0001 [1]

Answer:

Explanation:

The journal entries are shown below:

On July 1

Prepaid insurance A/c Dr $9,400

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3 years ago
When is it not necessary to build a new market supply schedule?
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3 years ago
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