1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
djverab [1.8K]
3 years ago
14

A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will: A)

decrease the degree of operating leverage. B) decrease the contribution margin. C) have no effect on the break-even volume. D) have no effect on the contribution margin ratio.
Business
1 answer:
liubo4ka [24]3 years ago
3 0

Answer:

A) decrease the degree of operating leverage

Explanation:

The contribution margin is

sales - variable:

(sales + 2) - (variable + 2) = sales - variable

no change

so B is FALSE

as the contribution margin ratio is:

(sales - variable ) / sales

this increase will impact the contribution margin ratio.

(sales + 2 - (variable +2))/ (sales + 2)

(sales - variable) / (sales + 2)

the CMR will decrease.

so D is FALSE

the break-even on sales will increase as the CMR decreases

more units are needed to fullfil the fixed cost

so C is FALSE

A) decrease the degree of operating leverage

ΔEBIT / Δrevenue

sales increase and the variable cost increases

a change in the sales revenue will not be as efficient as it was before the degree of leverage will decrease.

You might be interested in
Each currency has a changing value relative to other countries. This is referred to as the country’s blank
alex41 [277]

Each currency has a changing value relative to other currencies. This is referred to as a<u> "currency's exchange rate."</u>


An exchange rate is the rate at which one currency will be exchanged for another, it is additionally viewed as the estimation of one nation's cash in connection to another currency.  

Exchange rates are resolved in the foreign exchange market, which is available to an extensive variety of various sorts of purchasers and venders, and where money exchanging is ceaseless: 24 hours daily aside from ends of the week.

3 0
3 years ago
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits an
ikadub [295]

Answer:

$ 226.04

Explanation:

Given:

Paying fund, FV = $ 30000

Interest rate, i = 2%

Time, t = 10 years

Now,

\textup{PMT}=\textup{FV}[\frac{i}{(1+i)^n-1}]

since, the payment is made monthly

thus,

n = 10 × 12 = 120 months

i = 2% / 12 = 0.02 / 12

on substituting the values in the above equation, we get

PMT={30000}[\frac{\frac{0.02}{12}}{(1+{\frac{0.02}{12}})^{120}-1}]

or

PMT = $ 226.04

3 0
3 years ago
For which of the following businesses would the job order cost system be appropriate? a.oil refinery b.canned soup processor c.l
attashe74 [19]

Answer:

The correct answer is letter "C": lumber mill.

Explanation:

Job orders are forms that are given to workers that typically represent a third party to a company so they can perform a specific work. Besides, the job order includes the time expected for the worker to finish the job, the estimated wage charged, the materials needed to perform the job, and the number of employees necessary.

<em>Lumber mills</em> typically work with job orders to provide with cut pieces of wood to furniture enterprises.

4 0
3 years ago
Which of the following examples is NOT a trust indorsement?
konstantin123 [22]

Answer:

a. Rao indorses his payroll check in blank.

Explanation:

There are many types of indorsements, and out of them one is "Trust Indorsement"

Trust Indorsement is an indorsement to a person who can use the funds for the benefit of the indorser.

Example:

Brian indorses a check to his employee Denny  "Payable to Denny, as agent for Brian", This is an example of trust indorsment.

Option b and c are clearly examples of trust indorsements in which you can notice that Rao has indorsed his lawyer and accountant "as agent for Rao".

Whereas, option a is NOT a trust indorsment but rather a "Blank Indorsement"

Blank Indorsment is an indorsement that doesn't have any particular indorsee and only has a signature on it.

7 0
3 years ago
What does ships in 1 2 business days mean?
Verdich [7]
It means your order should leave (usually does not mean always) the warehouse ( or the store) within 1 or 2 days after your order is received.

The arrival time will depend on how your order is shipped.
8 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose that people’s expectations in 2013 are rational. If the Federal Reserve engages in a fourth round of quantitative easing
    6·1 answer
  • Managers who establish effective goals can enhance the performance of their employees and of their company. The manager in the s
    15·1 answer
  • Factors that can influence the success of a TQM program in a negative way include all of the following, EXCEPT _______. a. tasks
    10·1 answer
  • Which of the following situations would most likely encourage a firm's managers to make decisions that are in the best interests
    12·1 answer
  • 2000 is deposited into a newly opened fund on January 1, 1999. Another deposit is made into the fund on July, 1 1999. On January
    13·1 answer
  • Polly secured a good grade with a 4 GPA in her admission test. However, she was denied admission by a management school. Hence,
    5·1 answer
  • WILL MARK BRAINLY!
    13·1 answer
  • Preferred stock ___.
    8·1 answer
  • A decrease in the inventory account during the year should be reported on the indirect method statement of cash flows as?
    12·1 answer
  • concepts like value and relationship marketing are important in designing an organization's marketing program because such a pro
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!