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Sindrei [870]
2 years ago
13

A company that makes organic fertilizer has supplied the following data: Bags produced and sold 200,000 Sales revenue $ 1,560,00

0 Variable manufacturing expense $ 660,000 Fixed manufacturing expense $ 448,000 Variable selling and administrative expense $ 180,000 Fixed selling and administrative expense $ 214,000 Net operating income $ 58,000 The company's degree of operating leverage is closest to:
Business
1 answer:
Natali5045456 [20]2 years ago
5 0

Answer:

The company's degree of operating leverage is closest to $840000

Explanation:

Selling price per unit = Sales revenue / No. of bags sold

= $1560000/200000 bags = $7.8 per bag

Variable cost per unit=Total variable expenses/No. of units

= $840000/200000 units = $4.2 per bag

Company’s unit contribution margin = Selling price per unit-Variable cost per unit

= $7.8 per unit-$4.2 per unit = $3.6 per unit

Company's degree of operating leverage = Variables manufacturing expense + Variable selling and administrative expense

=$660000+$180000 = $840000

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evablogger [386]

<u>b. Hooking up</u> is the term refers to an affiliate relationship between an accounting/auditing firm and its sponsoring organization in China.

<u>Explanation</u>:

Hooking up is the term refers the affiliate relationship between an accounting/auditing firm and its sponsoring organization.

Auditing Firm is a company which reviews the activities of an organization to identify their inefficiencies and achieve the organizational objectives. Auditing firms can help in investigating the potential theft or fraud and ensure compliance with applicable terms and policies. The reports of the organization can be maintained accurately.

The auditing firm works for their sponsored organization and helps them in achieving their goals.

4 0
3 years ago
Suppose the current level of output is 5000. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, re
Tamiku [17]

Answer:

5575

Explanation:

The computation is shown below;

<u>Factor      Elasticity          Increase        Effective Increase </u>

                      A                        B      A × B

Capital      0.3                                 10%      3.00%

Labor        0.7                                  5%       3.50%

Increase due to Productivity                      5.00%

Total Increase in Output                             11.50%

(3% + 3.5% + 5%)  

Original Output                                              5000

Increase in Output (5000 × 11.5%)                 575

Increase Output (5000 + 575)                      5575

3 0
3 years ago
When Callie developed a detailed description of her ideas for a gym and asked for feedback from women about the proposal, she wa
Korolek [52]
<span>When Callie developed a detailed description of her ideas for a gym and asked for feedback from women about the proposal, she was engaging in? Concept testing. Concept testing is the act of getting opinions/reactions to a product or service prior to the product or service entering the market. This helps gage consumer interest when pulling in a group of potential customers. </span>
3 0
3 years ago
Correctly complete the following statement. We may be more likely to consider using qualitative forecasting techniques when Sele
Nostrana [21]

Answer:

b

Explanation:

There are two types of forecasting method

1. Qualitative forecasting

2. Quantitative forecasting

Qualitative forecasting can be described as when subjective judgement or non quantifiable information in forecasting.

<em>When is qualitative forecasting suitable ?</em>

  1. It is used when historical data in unavailable.
  2. this method is suitable when it is predicted that future result would depart from what historical data may suggest

<em>Advantages of Qualitative forecasting </em>

  1. it is flexible
  2. It can be used when data available is ambiguous or unclear

<em>Disadvantage of Qualitative forecasting </em>

It is subjective.

Quantitative forecasting can be described as forecasting using historical data

3 0
2 years ago
Which of the following scenarios illustrates the law of demand?
Genrish500 [490]

Answer:

Option B is correct.

Explanation:

In order to answer this question correctly, we first need to understand the law of demands.

Law of demands: It says that the relationship of price and quantity demanded is inversely proportional. It means if the price of a particular product goes high, then the quantity of demand will be reduced. Similarly, if the price of the product is low then the quantity of demanded will be higher.

Here,

Option B is the most relevant to the Law of Demand which says that Kathleen eats more steak when the price is low. It means when the price is low, the quantity of steak demanded is higher in Kathleen's case. Furthermore, Kathleen eats less when the price is high. It means, when the price of steak is higher then the quantity of steak demanded from Kathleen is low.

Hence, Option B is the correct option which fulfills the law of demand.

3 0
2 years ago
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