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34kurt
2 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]2 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.

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Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,100
Ilya [14]

Answer:

$102,870

Explanation:

The computation of Total cash disbursements is shown below:-

Variable overhead = Direct labor budget × Variable overhead rate

= 8,100 × $1.40

= $11,340

Fixed expenses incurred in cash = Total fixed expenses - Depreciation

= $100,440 - $8,910

= $91,530

Total cash disbursements = Total variable manufacturing overhead + Fixed cash overhead

= $91,530 + $11,340

= $102,870

Therefore for computing the Total cash disbursements we simply applied the above formula.

6 0
2 years ago
Total assets are $1,450, fixed assets are $790, long-term debt is $750, and short-term debt is $300. What is the amount of curre
Bad White [126]

Answer:

A. $660  

Explanation:

Total assets include current assets, fixed assets, and intangible assets Current assets include cash, stock, receivable account, etc. Fixed assets include plant & machinery, land, equipment, furniture & equipment, etc.

And the intangible assets are trademarks, copyrights, goodwill, and so$66 on.

The computation is shown below:

= Total assets - fixed assets

= $1,450 - $790

= $660

5 0
3 years ago
The matching concept states that expenses incurred to produce particular revenues should be matched with those revenues.
slega [8]
False. The revenues usually contemplate the profit added to the expenses or costs, therefore, they can't match.
4 0
3 years ago
the nominal interest rate is 7 percent and the expected inflation rate is 4 percent. the real interest rate is
Hoochie [10]

Answer:

2.88%

Explanation:

According to the fisher equation :

(1 + Nominal interest ) = (1 + real interest) (1 + inflation rate)

(1.07) = (1.04) x (1 + real interest)

(1.07) / (1.04) = (1 + real interest)

1.028846

real interest rate = 2.88%

6 0
2 years ago
Which statement best describes the effects of low and high interest rates on the economy? Low interest rates encourage consumers
kirill115 [55]

The correct answer is A. Low interest rate encourage consumers to borrow and spend, while high interest rates encourage saving.

Interest rate is termed as the rate which a bank charges to its borrowers.

Nationally a good interest rat for a loan is 3.7%.

Recession and inflation are some effects of interest rate. We get to hear the federal funds rates if the interest rate falls or rises.

If the interest rate becomes high people will start to spend less to avoid the high cost.

6 0
3 years ago
Read 2 more answers
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