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3 years ago

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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Elinore is asked to invest $ 4 comma 900 in a friend's business with the promise that the friend will repay $ 5 comma 390 in on

Mandarinka [93]

Answer:

0.09 or 9%

Explanation:

This question has some irregularities. The correct question should be :

Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $ 5,341 in one year's time. U.S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case?

Solution

Given from the question

Investment (I) = $4,900

Return on investment (ROI) in one year = $5,341

Rate or opportunity cost of capital r is given by

ROI = I × (1 + r)

input the given data

$5,341 = $4,900 (1 + r)

$5,341 = $4,900 + $4,900r

$5,341 - $4,900 = $4,900r

r = ($5,341 - $4,900) / $4,900

r = 0.09

Or 9% in percentage

6 0

3 years ago

Worldwide Electronics is a global manufacturing firm that produces televisions, monitors, and other consumer electronic equipmen

Paha777 [63]

Answer:

Explanation:

1. JH Green, Corporate Personnel Officer - Discretionary cost center

2. Kalya Borodina, Sales Manager, Peru - Revenue center

3. Jay Smith, Chief Executive Office - Investment center

4. Andres Goya, Vice-President, South America - Profit center

5. Irene Chan, Mexico City Plant Manager - Cost center

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2 years ago

Why is place mix regarded as an important element of marketing mix ? How does the consideration related to market have an impact

Paha777 [63]

Answer:

is d

Explanation:

6 0

2 years ago

Read 2 more answers

Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the following three lists of cost of g

solmaris [256]

Answer:

(A) 352,410

(B) 328,910

(D) 461,770

(E) 165,000

(F) 175,000

Explanation:

1.- WIP, August 1st: $ 19,660 $ 41,650 (e)

2.- Cost added $ 332,750 (c) $ 1,075,000

3.- Subtotal (a) $ 515,770 $ 1,240,000

4.- WIP, August 31th $ 23,500 $ 54,000 (f)

5.- COGM (b) (d) $1,068,000

The identity to solve for this is as follow:

$$$beginning WIP + cost added = COGM + ending WIP$

<u>The third row is the sum of the left side of the of the equation.</u>

beginning WIP + cost added.

(a) 332,750 + 19,660 = 352,410

(e) 1,240,000 - 1,075,000 = 165,000

COMG will be third row less fourth row

the ending WIP subtracted from the left side

(b) 352,410 - 23,500 = 328,910

(d) 515,770 - 54,000 = 461,770

(f) 1,240,000 - 1,068,000 = 175,000

8 0

3 years ago

Limon, an agent for mindwonder games llc, executes an unauthorized contract with now marketing, inc. the deal is highly advantag

anygoal [31]

The contract in the scenario is considered to be valid even if the contract is unauthorized because both of the parties have agreed on the contract and therefore, it is considered to be valid and made use of even if there is no authorized personnel involved.

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2 years ago

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