A)Degree of operating leverage=Contribution/EBIT
=6400,000/2140000=2.99.
B) Degree of operating leverage=Contribution/EBIT
=5600,000/1340000=4.18
C) Degree of operating leverage=Contribution/EBIT
=7600,000/1015000=7.49
One conclusion that companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.
The Operating Leverage formula is used to calculate a company's break-even point, helping to set a reasonable selling price that covers all costs and produces a profit. This gives you insight into how well your company is using fixed-cost items such as inventory and machinery to make a profit. The more profit a company can extract from the same amount of fixed assets, the higher its operational leverage.
Learn more about operating leverage at
brainly.com/question/24278932
#SPJ4
Answer:
Fixed-rate
Explanation:
Fixed-rate mortgages are the most common type of home loan. Fixed-rate mortgages are offered in 15- and 30-year fixed-rate terms. Your interest rate will never change, though the principal and interest portion of your monthly mortgage payment will change as the loan amortizes
The worlds first and modern bank opened during the 14th century in Florence, Italy and later many branches were established in other parts of Europe. Even though the banking system became very crucial in the 14th century, the Bardi and Peruzzi families were able to start and establish several branches during this century.
<span>The answer
for the blank pace is:
"Classifications"
The full sentence will be read as follow:
If data aggregation is the goal of collecting the
data, Classifications are the best choice.</span>
Data aggregation means a process where information is
gathered and expressed in a summary form, and the purposes include
many such as statistical analysis etc.
<span> </span>
