All categories

3 years ago

Operating Leverage

Business

1 answer:

amid [387]3 years ago

3 0

Answer:

Degree of operating leverage= 1.4

Explanation:

Giving the following information:

Sales $6,160,000

Variable costs (4,620,000)

Contribution margin $1,540,000

Fixed costs (440,000)

Operating income $1,100,000

To calculate the degree of operating leverage, we need to use the following formula:

degree of operating leverage= Total contribution margin / operating income

degree of operating leverage= 1,540,000 / 1,100,000

degree of operating leverage= 1.4

You might be interested in

The Ishares Bond Index fund (TLT) has a mean (average) and annual standard deviation of realized returns of 6% and 10%, respecti

Aliun [14]

Answer:

(A). Law of 68 per cent 

range = mean + /- 1(standard deviation)

= 9 + / -1(10)

= 9 - 1(10) to 9 + 1(10)

= -1 to 19

(B). Law of 95 per cent 

range = mean +/- 1.96(standard deviation)

= 9 +/- 1.96(10)

= 9 - 1.96(10) to 9 + 1.96(10)

= -10.6 to 28.6

(C). Law of 99 per cent 

range = mean +/- 3(standard deviation)

=9 +/- 310()

=9 - 3(10) to 9 + 3(10)

= -21 to 39

8 0

3 years ago

Match the factors to the target capital structure preferred.

Paraphin [41]

Answer:

See below ~

Explanation:

Equity Capital Structure

Equity capital refers to the money owed by the owners or shareholders of the company.

Fast growing companies like software
Businesses in the growth stage
Companies with high growth rate or credibility
Companies not in a position to provide collateral

Debt Capital Structure

Debt capital in the capital structure of the company refers to the borrowed money at work.

Managers with conservative management style
Companies want to show high credit rating

7 0

2 years ago

Using accrual accounting, revenue is recorded and reported only a.when cash is received at the time services are rendered b.when

Veseljchak [2.6K]

Answer:

d.when the services are rendered without regard to when cash is received

Explanation:

Accrual based accounting requires that the services should be performed or rendered associated with the revenue when you recognize it. It does not matter when the cash for the revenue is received. You may received the cash in advance or after some time from you rendering services. As your render the services you can record your revenue.

8 0

4 years ago

Identify two ways lean production might be achieved

Nata [24]

Answer:

VJNJMJNBGNFVF VGJFKVKFKRKELÑKTKFKLRGRLBG

Explanation:NBGNNUKIKUUHKNU6GGGTGJ

4 0

2 years ago

Different bosses have the authority to run their own departments in

vovikov84 [41]

Decentralization organization? I think that is the answer.