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JulsSmile [24]
2 years ago
11

A company has a degree of operating leverage of 2.5. If sales increase by 10%, then profits will: Multiple choice question. incr

ease by 25% increase by 10% decrease by 10% decrease by 25%
Business
1 answer:
RSB [31]2 years ago
4 0

Answer:

. increase by 25% increase

Explanation:

The degree of operating leverage (DOL) measures the sensitivity of a company's operating income or profits to changes in the demand

DOL = percentage change in operating income or profits / percentage change in units sold

2.5 = percentage change in operating income / 10%

percentage change in operating income  = 10% x 2.5 = 25%

profits will increase by 25%

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Answer:

The correct answer is the option 1: high pressure for cost reductions and low pressure for local responsiveness.

Explanation:

To begin with, the concept known as <em>"Global Standardization"</em>, in the field of marketing and business, refers to the strategy that the companies can use when they decide to implement the same marketing strategy or campaign to every country in where the organization works. Therefore that the term refers to the standardization of the strategy that the company use in the marketing area to the whole globe due to the fact that mainly they look for the reduction of the costs and also because the pressure from the local responsiveness from the other foreign countries tend to be very low.

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3 years ago
Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $89,000. However, the bu
gogolik [260]

Answer:

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a face value of $450 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective int
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Answer:

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