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nikklg [1K]
4 years ago
13

The degree of operating leverage at a specific level of sales helps the managers calculate the effect that potential changes in

sales will have on operating income. true or false
Business
1 answer:
Zarrin [17]4 years ago
5 0

Answer: TRUE

Explanation:

The DEGREE OF OPERATING LEVERAGE (DOL) is a ratio that measure just how much operating income will change if there is a change in sales.

The formula is the % change in EARNINGS BEFORE TAX/ % change in SALES.

This measure therefore assists analysts in estimating the impact of any change in sales in a company.

You might be interested in
What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%
KengaRu [80]

Answer:

PV of Perpetuity = $5000

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow  /  r

Where,

  • r is the required rate of return

PV of Perpetuity = 250 / 0.05

PV of Perpetuity = $5000

3 0
3 years ago
A job candidate is being taken out to dinner by a an interviewer. The interviewer gets to pick therestaurant they will dine (eit
Fofino [41]

Answer and Explanation:

a. They will visit the local restaurant and the job candidate will choose to have salad as an order. Please check the attachment I added for the other parts of the answer.

b. The interviewer would make a choice and choose local restaurant. Based on this choice, the job candidate will choose salad. If the interviewer should choose chain restaurant, the job candidate will choose steak

C. Strategy

The interviewer:

S = {chain,local}

Job candidate:

S = {(steak, salad} multiplied by {steak, salad}

= {(Steak steak), (steak salad), (salad, steak), (salad,salad)}

5 0
3 years ago
Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing
Luden [163]

Answer:

If Mo pays cash, the cost of the purchase will be $140.

If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.

Explanation:

If Mo pays cash, it implies that she does not get the 3% discount she is entitled to, with the use of her credit card.  Therefore, she will bear the full cost.  However, if she uses the credit card, the discount is $4.20 ($1540 * 97%) and she will pay only $135.80 as the discounted price of the electronic reader.

5 0
4 years ago
Read 2 more answers
Often a commercial payer will implement changes to claims completion requirements throughout the year, and most providers discov
Tomtit [17]

The correct statement is when claims are denied.

<h3>What is the commercial paper? What is the duration of the commercial paper?</h3>

The commercial papers are the short term money market instruments, that are issued by the companies which holds a good credit rating.

Usually, the maturity date of the commercial paper lies between the fifteen days or up to one year.

The companies mostly issued the commercial papers to meet their short term liabilities.

Learn more about the commercial paper here:-

brainly.com/question/22985280

#SPJ1

6 0
2 years ago
Which of the following factors does not affect the initial market price of a stock?
MissTica

Answer:

The correct answer is (C)

Explanation:

Generally the common stocks worth per share is normally a limited quantity, for example, $0.05 or $0.01 and it has no association with the market estimation of the price of stock. The standard worth is once in a while referred to as the regular stocks.  The par value has no connection with the price of the stock.

7 0
3 years ago
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