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
34kurt
3 years ago
12

Operating leverage predicts the effects that fixed costs have on operating income when​ ________. A. there are no sales returns

B. sales volume changes C. production is discontinued D. variable costs change
Business
1 answer:
andrew-mc [135]3 years ago
3 0

Answer:

 B. sales volume changes 

Explanation:

Operating leverage measures the effect of fixed cost on operating income when volume of sales change.

Operating leverage is created when a firm has fixed operational expenses. E.g. depreciation.

The degree of operating leverage = percentage change in operating income/ percentage change in unit sold

Operational income = Revenue - operating expenses - Cost of goods sold.

You might be interested in
A customer, who needs to drive to work in a Wisconsin winter, has a critical need to use the product Ice Melt. For him as a cons
Blizzard [7]

Answer:

Urgency / Postponement leads to customer inelastic demand of ice melt.

Explanation:

Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price

Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,

Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price

Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.

5 0
4 years ago
Suppose that when the price of a good falls from $12 to $9, the quantity demanded of that good rises from 310 units to 350 units
Snowcat [4.5K]

Answer:

The approximate price elasticity of demand between these two prices is

- 0.42

Explanation:

In this question ,we use the formula of price elasticity of demand which is shown below:

Price elasticity of demand = Percentage change in quantity demanded ÷ Percentage change in price

where,

Percentage change in quantity demanded is calculated by

= New Quantity - Old quantity ÷ New Quantity + Old quantity

= 350 - 310 ÷ 350 + 310

= 40 ÷ 660

= 0.06060

Percentage change in price is calculated by

= New price - Old price ÷ New price + Old price

= 9 - 12  ÷ 9 + 12

= - 3 ÷ 21

= - 0.14285

Now put these values over the above formula

So, the answer is = 0.06060 ÷  - 0.14285 = - 0.42

Hence, the approximate price elasticity of demand between these two prices is - 0.42

3 0
4 years ago
The sales of cookies for Cutez Ltd. are given below:
tiny-mole [99]

E. 22.5 percent should be the answer


5 0
4 years ago
In order to produce 100 pairs of oven gloves, Marcia incurs an average total cost of $2.50 per pair. Marcia’s marginal cost is c
anygoal [31]

Answer:

option (d) $200.00

Explanation:

Average total cost for 100 pairs = $2.50

Marginal cost for every pair = $10.00

Now,

Total cost = Fixed cost + Variable cost

or

Fixed cost = Total cost - variable cost

or

Fixed cost = (Average total cost × 100) - (Marginal cost × 100)

= ($2.5 × 100) - ($1 × 100)  

= $250 - $100  

= $150

thus,

Total cost to produce 50 pairs of oven gloves

= fixed cost + variable cost

= $150 + (50 × $1)

= $150 + $50

= $200

Hence,

option (d) $200.00

6 0
3 years ago
Jonas doesn't want to keep his savings in an account because he doesn't want to pay bank fees. Which of the following is an argu
blsea [12.9K]

The correct answer is C. Money is safer in the bank.

Explanation:

The main point or position of Jonas is that savings should be kept in an account due to the costs associated with this. In this context, the only argument that refutes Jonas' position and it is directly related to the main point of Jonas is "Money is safer in the bank" because even if keeping savings in a bank requires to pay fees this guarantees the money will be safe, which does not occur if Jonas keeps his savings at home. Moreover, the safety factor makes the option of the bank better, which refutes Jonas position.

3 0
3 years ago
Other questions:
  • ​Zeta is an American multinational retail corporation. To move ahead of its competitors and increase revenue, Zeta began to empl
    14·1 answer
  • A public service announcement (PSA) for the Partnership for a Drug Free America is aired on three major television networks for
    6·1 answer
  • If a company incorrectly records cash received for services to be provided in the future with a debit to Cash and credit to Sale
    11·1 answer
  • Clay University, a not-for-profit university, earned $300,000 from bookstore revenue and spent $100,000 for faculty research in
    12·1 answer
  • At the beginning of the year, a company predicts total overhead costs of $810,900. The company applies overhead using machine ho
    8·1 answer
  • ________ is an internationally recognized "missing child" safety program in the united states (and canada), originally created b
    9·1 answer
  • Which element of a high-performance work system determines how the details of the organization's necessary activities will be gr
    11·1 answer
  • A corporate bond pays 7​% of its face value once per year. If this ​$10 comma 000 10​-year bond sells now for ​$10 comma 600​, w
    14·1 answer
  • Quy trình bán hàng gồm mấy bước ? bước nào quan trọng nhất
    12·1 answer
  • madeline works in the sales division of an office supply business. most of her time is spent on the phone talking to current cli
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!