Answer: a. 1.42
b) 2.74
c) 3.89
Explanation:
a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.
It is calculated with the formula,
= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)
= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)
= 1.42
b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.
The formula is,
=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax
= 301,000/110,000
= 2.74
c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.
It is calculated by multiplying DOL and DFL.
= 1.42 * 2.74
= 3.89
Should you need any clarification just hit that comment button. Cheers.
The costs and risks associated with doing business in a foreign country are typically lower in economically advanced and politically stable democratic nations.
A business is an activity that makes a living or makes money by manufacturing or buying and selling products.
Business is defined as an organization or business entity engaged in commercial, industrial, or professional activities. A business can be a for-profit or non-profit organization. The types range from corporations with limited liability to sole proprietorships, corporations and partnerships.
The definition of business is the profession or trade, the buying and selling of goods or services for profit. A business example is agriculture. An example of a transaction is the sale of a home.
Learn more about business here:brainly.com/question/24553900
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Answer:
False
Explanation:
Contribution margin per unit = Sales - variable cost
Contribution margin per unit (Model A) = $432 - $404
Contribution margin per unit (Model A) = $28 per unit
Contribution margin per unit (Model B) = $410 - $304
Contribution margin per unit (Model B) = $106 per unit
False, Contribution margin per unit (Model B) is higher so, motivated to push sales of Model A will be false.
Break-even in units = Fixed cost / Contribution margin per unit
Break-even in units (Model A) = Fixed cost / $28
Break-even in units (Model B) = Fixed cost / $106
A. The size of the factory is fixed.
We know there will always be costs of rent and etc when running a business so even in the short run there is fixed costs. The output is always variable depending on the number of workers. The number of workers is also not fixed, but the size of the factory is because you cant just get up and move your business over night, it costs money and is a lot of work.
<u>Full question:</u>
When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.
a. responsive
b. perceptive
c. identifiable
d. reachable
e. quantifiable
<u>Answer:</u>
Starbucks's critics suggested consumers would not be responsive to the company's offerings.
<u>Explanation:</u>
Marketing is all concerning providing the requirements and needs of purchasers. Consumers have supplies and are prepared to contribute to meeting their requirements by acquiring goods and services. The benefit of products offered in the markets depends on whether they satisfy consumer or company needs.
Consumers’ choices on whether to acquire or not to acquire will be a sign of the production of the goods in the market. A portion is responsive if its members behave likewise and confidently to the purchasing mix. Initial critics did not gather that purchasers would acknowledge confidently to the proposal of a $4 cup of coffee.
