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siniylev [52]
3 years ago
7

Firm A employs a high degree of operating leverage; Firm B takes a more conservative approach. Which of the following comparativ

e statements about firms A and B is true?
A. Firm B has a lower break-even point than Firm A, but Firm A's profit grows faster after the breakeven.
B. Firm A has a lower break-even point than Firm B, but Firm A's profit grows faster after the breakeven.
C. Firm A has a higher break-even point than Firm B, but Firm A's profit grows slower after the breakeven.
D. Firm B has a lower break-even point than Firm A, and profit grows the same rate for both companies after the break-even point
Business
1 answer:
Aneli [31]3 years ago
4 0

Answer:

Statement B is correct.

Explanation:

High Operating Leverage represents higher fixed cost in comparison to variable cost, and thus that means the company will get its break even earlier or we can say with low units, but after break even profits will be higher.

As in the given case Firm A has higher Operating Leverage than Firm B, thus Firm A has lower Break even point but eventually its profit after reaching break even will grow higher.

Thus, Statement B is correct

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4) Double-declining-balance depreciation: A) is an accelerated depreciation method. B) ignores the residual value in computing d
Oxana [17]

Answer:

Option D is correct.

Explanation:

Every single offered proclamation are right is the response in light of the fact that under the Double-declining-balance depreciation since it has more devaluation costs when contrasted with different strategies for depreciation.It isn't taking the leftover worth while figuring the deterioration it considers at end year depreciation is determined by taking the distinction of a year ago equalization and rescue value.Under this strategy deterioration is determined on balance measure of depreciation or book value of assets.

4 0
3 years ago
Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how man
sveta [45]

Answer:

$240,000

Explanation:

Selling price per pair of shoes $160 x 12,000 ...1,920,000

Cost (to you) per pair of shoes $80 x 12,000 .... $960,000

Sales commission per pair  $10 x 12,000..........    $120,000

Salaries ..........................................................................$420,000

Rent................................................................................ $120,000,

Advertising..................................................................... $20,000,

Insurance .........................................................................$16,000,

Miscellaneous fixed costs ........................................<u>..$24,000,</u>

Profit ..............................................................................<u>$240,000</u>

6 0
3 years ago
The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% co
PolarNik [594]

Answer:

Worley Company

                                                 Units       Completion %          Equivalent Units

                                                                                                  D. Mat       CC

Beginning work in process    2,400             35%                   2400        840  

Transferred                             10,800                                  10,800        10,800

Ending work in process          <u>1,900               60%                1900         1140</u>

<u> Total                                       15100                                      15,100       12780</u>

Worley Company

Number of Equivalent Units of Production

Whole Units    15100

Direct Materials Equivalent Units    15,100

Conversion Equivalent Units 12780

Inventory in process, beginning= Direct Materials + Conversion Costs

                                                   =       2400 +  840  = 3240

Transferred to Packing Department= Direct Materials + Conversion Costs

                                                               =    10,400 + 10400

                                                               

Inventory in process, ending =  Direct Materials + Conversion Costs

                                                 =     1900 +1410= 3310

Total=       Direct Materials + Conversion Costs= 15,100 + 12780=  27880

3 0
3 years ago
In terms of the evolution of the internet, Web 2.0: Group of answer choices created online communities that connect buyers and s
Sever21 [200]

Answer:

In terms of the evolution of the internet,Web 2 point zero created online communities that connect buyers and sellers in new ways

Explanation:

Web 2 point zero as the name suggests is the second phase of internet advancement in that it transforms the internet from static web page into dynamic content as well as with the growth of social media channels.

Besides,the social media channels serve as platform for prospective sellers and buyers to connect and by extension to perfect business deals, thereby breaking the barriers of physical presence and the need to be operate in the same time zone.

6 0
3 years ago
Today is your 21st birthday and you just decided to start saving money so you can retire early. Thus, you are going to save $500
inna [77]

Answer: Option E -- 54.39years old

Explanation:

Compound interest is calculated using compound interest formula. Using compound interest formula, which is A = P(1+(r/n)) ^nt

Where A= Final Amount

P = Initial Principal Amount

r = Interest Rate

n = number of times interest applied per time period

t = number of times period elapsed

You/I would be 54.39years old when you/I retired. Which is Option E

3 0
3 years ago
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