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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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QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each altern
sladkih [1.3K]

Answer:

The differential revenue is equal to $25,000.

Explanation:

Differential revenue is the difference in revenue that may occur due to different course of actions.

Here, the projected revenue of Alternative A is $125,000.

And, the projected revenue of Alternative B is $150,000.

The differential revenue can be found by calculating the difference between these two.

Differential Revenue

=$150,000-$125,000

=$25,000

So, the differential revenue for this decision will be $25,000.

5 0
3 years ago
What toys were Georgia Caroline playing with?<br> - childhood class
Inga [223]

Caroline was playing with a slide, tunnel, teddy bear, panda, doll and a goldfish.                  

<u>Explanation</u>:

  • In her childhood days, her mother will take her to the park, beach. Caroline will enjoy those days. She will play with many toys and she will not give it to anyone.
  • Caroline will play in the zoo and she will enjoy that place. She will play with a teddy bear, goldfish, slides, tunnel, panda, and a doll. A nursery school was built for caroline. She will play in the evening at the school.

5 0
4 years ago
Suppose there is a product that is being sold in a perfectly competitive market. If the market price of the product falls​, prod
yuradex [85]

Answer:

Decrease; Less

Explanation:

The producer surplus is the difference between the minimum price that a producer is willing to accept for a product and the price he actually receives.  

When the market price of a product falls, the producer surplus will decrease as well.  

The lower market price implies that there will be less area between the supply curve and the market price of the product.

3 0
3 years ago
Assume Uber planned to cut losses by 40 percent by withdrawing from countries like China and Singapore. A year has now passed si
yKpoI14uk [10]

Answer: The correct answer is "d. control the direction".

Explanation: Uber need to control the direction because:

a. make the plan  - The plan has already been drawn up, is to withdraw from China and Singapore.

b. make the goal  - The objective was not met because, despite having executed the plan, there are still losses.

c. define objectives  - The objectives have already been defined and is to reduce losses.

d. control the direction  - The executed plan is not fulfilling the objectives therefore it is necessary to control the direction of it.

e. carry out the plan - The plan has already been carried out, a year has passed and there are still losses.

6 0
3 years ago
Read 2 more answers
A pair of shoes costs $25 to make. This means that you need to charge a price of at least _____ just to cover your costs.
Musya8 [376]

Answer:

if you just want to cover your costs you would have to charge 25 dollars for it if you dont want to make a profit

Explanation:

7 0
4 years ago
Read 2 more answers
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