The firm's degree of operating leverage is 1.23. Operating leverage is the measure of the degree to which a firm or project incurs a combination of fixed and variable costs. Businesses have more leverage when they have more sales resulting in a high gross merger and less fixed and variable costs.
To solve: Change in EBIT percent / change in sales percent
To strengthen your ideas and opinions with examples, facts, or details is to add supportive details.
It is important when analyzing data and drawing conclusions to have facts and details to support your reasoning. Especially if you are making large decisions for an organization, everyone needs to be able to understand why a decision was made. Having tangible information is the best way to support your ideas.
Venture opportunity screening is a business term which means the evaluation or the assessment of an entity in the business perspective in terms of its potential to generat<span>e income and grow commercially. The index of assessment also includes current and future financial performance when placed in the current context. </span>
Answer:
D. $7.30 per machine hour
Explanation:
The computation of Overhead Per Machine Hour is shown below:-
Overhead Per Machine Hour = Fixed Cost + Variable Overhead Cost ÷ Number of hours
= ($100,700 + (19,000 × $2)) ÷ 19,000
= ($100,700 + $38,000) ÷ 19,000
= $138,700 ÷ 19,000
= $7.30 per machine hour
So, for computing the Overhead Per Machine Hour we simply applied the above formula.
