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
Butoxors [25]
3 years ago
15

All else being equal, a company with a low operating leverage will have:

Business
1 answer:
nlexa [21]3 years ago
5 0

Answer:

c) relatively high variable costs

Explanation:

Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.

A business with a large amount of fixed cost relative to variable is said to have  a high operating leverage . For such business, operating income would  be more volatile because the operating income would not increase in commensurate proportion as sales revenue.

And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs

Operating leverage is calculated as

Contribution /Earnings before interest  and Tax

You might be interested in
What is one action an employer can take to lower wage levels?
Serjik [45]
The answer is C. Replace workers with machine

It's common for a company to replace workers with maschines in order to do hard menial labour such as wrapping packages, cutting products, shaping the products, moving the raw material, etc. which could increase efficiency and lower wage levels at the same time
6 0
3 years ago
Elemental Pharma Inc. recently acquired Crick Pharmaceuticals Inc. It now sells its own productsalong with the products original
UNO [17]

Answer:

Option A. It will lower its costs through economies of scale.

Explanation:

The reason is that the sales of both of the companies will increase and cost can be controlled by integration of departments like finance department, distribution department, etc. This will decrease the cost of the product which will be because of higher sales and cost benefits due to integration of department and this higher sales increases the production which reduces the cost. So the option A is correct.

4 0
3 years ago
Cyclical unemployment is BEST described as unemployment arising from
Ira Lisetskai [31]

Answer:

Contraction cycle or Recession

Explanation:

The cyclical unemployment is due to the cycles of economy ( expantion:Grow and contraction: recession) Under these circumstances unemployment is considered normal as the economy cannot sustain itself always in an expansion cycle.

3 0
3 years ago
A Japanese investor can earn a 1 percent annual interest rate in Japan or about 4.1 percent per year in the United States. If th
Whitepunk [10]

Answer: 97.99

Explanation:

The one-year forward rate that an investor would be indifferent between the U.S. and Japanese investments will be:

= Spot rate × (1 + Japanese rate / 1 + U.S rate)

= 101 × (1 + 1% / 1 + 4.1%)

= 101 × [(1 + 0.01) / (1 + 0.041)]

= 101 × (1.01/1.041)

= 101 × 0.9702209

= 97.99

4 0
3 years ago
How to wear black formal shoes?
Sladkaya [172]

Answer:

Go in for a traditional shirt-jeans outfit and pair it with black formal shoes. A plaid shirt, pair of blue jeans and black dress shoes is how you'll want to rock it! Get that macho look right by wearing a leather jacket over a formal shirt and jeans. Your shoes will complement the jacket perfectly.

Explanation:

3 0
3 years ago
Read 2 more answers
Other questions:
  • Talbot purchased a laptop for $1,500 and a television for $1,300. The laptop is used solely for business and the television sole
    13·1 answer
  • Which of the following statements is CORRECT?
    11·1 answer
  • NEED ANSWER ASAP
    14·1 answer
  • _____ is a way of producing a response to a stimulus by repeatedly pairing it with another stimulus that automatically produces
    5·1 answer
  • Pamela was injured in an auto accident by an uninsured driver. Pamela filed a claim with her insurer, American Mutual, for $2,00
    8·1 answer
  • Garcia Industries has sales of $200,000 and accounts receivable of $18,500, and it gives its customers 25 days to pay. The indus
    11·1 answer
  • Suppose that the world price of resins is $100 per ton. Now suppose that the United States imposes a 10% tariff on imported resi
    11·1 answer
  • Which of the following statements about taxation is TRUE?
    12·1 answer
  • You are considering the acquisition of XYZ Enterprises. You have made the following projections for XYZ for years 1-5 ($ million
    7·1 answer
  • The LIFO inventory cost flow assumes that the cost of the newest goods purchased are: A. assumed to be the first ones sold. B. a
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!