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3 years ago

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

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Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials invent

gayaneshka [121]

Answer:

Direct material used= $123,600

Explanation:

Giving the following information:

January 1 December 31

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Raw materials inventory $8,900 $11,300

Materials purchased $126,000

<u>To calculate the direct material used, we need to use the following formula:</u>

Direct material used= beginning inventory + purchases - ending inventory

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Direct material used= $123,600

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kipiarov [429]

The fact that support the idea that renting is a good is Landlords take care of most maintenance.

<h3>What is renting?</h3>

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It is obtaining a owner's property, in return for regular payments.

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2 years ago

An adjusting entry was made on year-end December 31 to accrue salary expense of $1,500. Assuming the company does not prepare re

cluponka [151]

Answer and Explanation:

The Journal entries are shown below:-

1. Salary Expense $1,500

To Salary Payable $1,500

(Being salary expense is recorded)

Here we debited the salary expenses as it increased the expenses and we credited the salary payable as it also increased the liabilities

2. Salary Expense Dr, $2,100

Salary Payable Dr, $1,500

To Cash $3,600

(Being cash paid is recorded)

Here we debited the salary expenses and salary payable as it increased the expenses and decreased the liabilities and we credited cash as it reduced the assets

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3 years ago

Brett owns investment land located in Tucson, AZ. He exchanges it for other investment land. In which of the following locations

andriy [413]

Answer:

F. None of The Above

Explanation:

Real property located in the United States exchanged for foreign real property (and vice versa) does not qualify as like-kind property.

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3 years ago