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3 years ago

A company with high operating leverage:

Business

2 answers:

BartSMP [9]3 years ago

8 0

Answer: c. has a greater proportion of fixed costs to variable costs

Explanation: Operating leverage is a measure a firm’s fixed costs as a percentage of its total costs. In order words, it measures the amount of debt the firm uses in finance its operations.

A company with high operating leverage is one with a greater proportion of fixed costs to variable costs. As a result, the firm is affected by volume of sales each month (since it must attain sufficient sales volume to cover its substantial fixed costs) even though it earns a large profit on each incremental sale.

stich3 [128]3 years ago

5 0

Answer:

c. has a greater proportion of fixed costs to variable costs.

Explanation:

Operating leverage refers to the how or the means through which firms or organization can increase their operating income by increasing their revenue generation. As a way, more quantity of goods has to be sold to make up the cost.

In other words, operating leverage is a way of determining a business break even point.

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A chain of video stores sells three different brands of DVD players. Of its DVD player sales, 50% are brand 1 (the least expensi

slava [35]

Answer: 60.98%

Explanation:

Probability that it is a brand 1 DVD player that needs repair work = Probability of brand 1 DVD needing repairs / Probability that a DVD player will need fixing while under warranty

Probability of brand 1 DVD needing repairs = Brand 1 sales percentage * Percentage of brand 1 needed repair

= 50% * 25%

= 12.5%

Probability that a DVD player will need fixing while under warranty = (50%* 25%) + (30% * 20%) + (20% * 10%)

= 20.5%

Probability that it is a brand 1 DVD player that needs repair work = 12.5% / 20.5%

= 60.98%

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3 years ago

What happened to assets, earnings, dividends, and cash flows during the financial year? The Provincial and Teritorial Securities

Alchen [17]

Answer:

Is required by the Provincial and Territorial Securities Commissions and includes the audited document that shows the company's financial results for the past year and management's discussion about the future outlook and plans - ANNUAL STATEMENT

The annual statement is a very important document that shows a company's financial results in a period as well as the future outlook and plans of the company according to management.

Details changes in the capital received from investors in exchange for shares (paid-in capital), donated capital, and retained earnings - STATEMENT OF CHANGES IN EQUITY.

The Statement of changes in equity shows the changes in capital from investors as well as donated capital and retained earnings.

Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows - STATEMENT OF CASHFLOWS

A very important statement, the Statement of cashflows shows the actual amount a company has by deducting its cash outflows from inflows.

Gives information about earnings before interest, taxes, depreciation, and amortization. - INCOME STATEMENT

The Income statement is used to calculate the income for the company in a particular period. It includes expenses such as taxes, interest, depreciation and amortizaton.

Provides a quantitative summary of a company's assets, liabilities, and net worth at a specific point in time. BALANCE SHEET.

The Balance sheet is used to show the assets, liabilities and equity of a company in a given period.

Does the firm generate enough internal funds to support anticipated investment or does additional outside capital need to be raised? - STATEMENT OF CASHFLOWS

As the Statement of Cash Flows shows the actual amount of money available, it would be the best to use to see if the company is generating enough internal funds.

Can the firm meet all its short-term obligations using its current assets? - BALANCE SHEET

The Balance sheet contains information on the firm's current assets as well as its current liabilities and so would be the best statement to use.

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3 years ago

What do you call the little lines at the top and bottom of a capital i?

lyudmila [28]

I believe that is called the arm.

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3 years ago

Read 2 more answers

A company invests $1 million to clear land and plant pine trees. The trees will mature in 10 years and the company expects to se

Len [333]

Answer:$300,000

Explanation:if the company sells the trees at the rate of $3000000 in 10 years, the annual rate of return on $ 1000000 investment will be $300000 ($3000000/10=$300000).

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3 years ago

On jan 15 ABC Co sold a piece of land for 4000 when the original cost of the land was 4000. show how to journalize the transacti

Murljashka [212]

The correct actions to show the journalized transaction of the sale of the piece of land by ABC Co. are:

1. 4,000 is entered in the cash dr column
2. sold land is entered in the explanation column
3. 4,000 is entered into the other accounts cr column
4. land is entered into the accounts credited column

<h3>How to record the sale of the land?</h3>

When land is sold, as ABC Co just did, the cash account is to be debited by the amount the land was sold for. This is because cash is increasing from the sale and so, like normal assets, will be debited to show an increase.

Land will be credited with the value of the land which is $4, 000. This shows that the land is no longer owned by the company and like other assets, when an asset leaves a company, it is credited.

Find out more on recording the land at brainly.com/question/20714023

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1 year ago