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LuckyWell [14K]
3 years ago
11

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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4 years ago
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3 years ago
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Which of the following is considered an order winner in an automobile? Select one: a. A comfortable seating arrangement that is
Vinvika [58]

Answer:

The answer is: D) A good-quality radio particular to that brand of automobile

Explanation:

An order winner is a product´s characteristic that will make a client decide to purchase the product. Order qualifiers are products´ characteristics that makes the product be considered as a purchase option by customers. Order qualifiers are like minimum market standards that products must meet to be able to compete in that market.

In this question the only characteristic unique to the car manufacturer was the good quality radio (order winner). All the other characteristics were similar between brands or car designs.

8 0
4 years ago
Big Dom’s Pawn Shop charges an interest rate of 27 percent per month on loans to its customers. Like all lenders, Big Dom must r
Bad White [126]

Answer:

a. 324%

b. 16.61%

Explanation:

a. The computation of the APR is the annual rate of interest which is shown below:

= Interest per month × number of months in a year

= 27% × 12 months

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b. And, the  effective annual rate would be

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7 0
3 years ago
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