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dangina [55]
3 years ago
5

Would a firm with low degree of operating leverage need to sell more units of products to reach break-even point or less? Why?

Business
1 answer:
Leokris [45]3 years ago
6 0

Answer:

The company would need to sell less units of product.

Explanation:

Operating leverage measures the relationship between variable and fixed costs. Those companies with low operating leverage have a larger proportion of variable costs in its total costs structure and need to sell smaller amount of units in order to cover its fixed costs. Since breaking point is the point were profit is equal to zero and where sales income is equal to the total costs, consisting of both fixed and variable costs, it needs to sell less products, as its variable costs increase with the number of units sold.

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Sell or Process Further
bazaltina [42]

Answer:

-$600

Explanation:

For computing the net benefit or (cost), first, we have to determine the sales price increased which is shown below"

= Sale value of completed sailboats - a sale to boatyards

= $6,500 - $5,200

= $1,300

And, the additional cost is $1,900

So, the net processing cost would be  

= $1,300 - $1,900

= -$600

All other information which is given is not relevant. Hence, ignored it

7 0
3 years ago
A company uses LIFO. At the beginning of the current year its inventory was $200,000, and at the end of the current year its inv
andriy [413]

Answer:

FIFO ending inventory = $290000

Explanation:

given data

current year inventory = $200,000

end of the current year inventory = $250,000

start of the year LIFO reserve = $30000

end of the year  LIFO reserve = $40,000

solution

LIFO reserve is difference between inventory using LIFo and inventory using FIFO

so

FIFO ending inventory = LIFO ending inventory + LIFO reserve ...............1

put her evalue we get

FIFO ending inventory = $250000 + $40000

FIFO ending inventory = $290000

7 0
4 years ago
How might a marketing manager for a manufacturer of turboprop engines, used in private jet planes, use the naics to help her wit
makvit [3.9K]
<span>The manager could keep track of the NAICS number from their best customers and find a list of companies with identical NAICS numbers. He/she could also find the numbers for all government units, including local, state and federal. NAICS are very useful for analyzing target customers.</span>
3 0
3 years ago
A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything
Hitman42 [59]

Answer:

D. Value of referrals

Explanation:

6 0
4 years ago
The contrast error is committed when the rates rate people:
serious [3.7K]

Answer:

d) relative to others instead of against performance standards.

Explanation:

Contrast error is one that occurs during performance rating where a person is not rated objectively, but against previous people who performed good or badly.

The person's ratings is affected negatively or positively.

A person that performs well subconsciously sets a benchmark in the mind of the rater, and he now rates future participants based on this benchmark and not on performance standards that have been set.

5 0
3 years ago
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