Frank Corp has a contribution margin of $450,000 and profit of $150,000. What is its degree of operating leverage?
1 answer:
Answer:
3
Step-by-step explanation:
given: contribution margin=$450,000 and net profit= $150,000
To find operating leverage
Now, operating leverage is a cost accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variables costs has high leverage.
therefore, operating leverage= =3
operating leverage is 3
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Answer:
Step-by-step explanation:
Here we can see that the parent function is and the translated function is g(x). f(x) is a parabola.
Rule says that any factor if multiplied by f(x) is going to contract the graph towards the y axis and vice versa.
Similarly any factor if f(x) is divided by some factor it is going to be stretch the graph away from the y axis and vice versa.
Here we can see that the translated graph g(x) is stretched away from the y axis with reference to the parent function f(x). Hence as per he rule discussed above, we get a preliminary information that the parent function f(x) is being divided by some factor.
now we are given that
Where as
{as given in the graph}
Hence
at x=3 , f(x) = 9 and g(x) = 1 , and also we have discussed above that f(x) is divided by some factor. Hence