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3 years ago

Which of the following statements is true regarding the degree of operating leverage?

Business

1 answer:

kari74 [83]3 years ago

6 0

Answer:

Explanation:

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

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

DOL = [Q(P - V) ] /[ Q(P - V) - F]

Q = quantity

P = price

V = variable cost

F = fixed cost

the higher the fixed cost, the higher the DOL

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Do the following activities contribute to US GDP in 2020? Explain why or why not? In which year do these activities contribute t

ale4655 [162]

Answer:

Explained below.

Explanation:

In option (a) no it does not contribute to the US GDP in any year. The transaction appears in expenditure as an increase in consumption and a decrease in net exports that offset. According to option (b) yes it contributes to US GDP in 2013. The transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in net exports offset by a decrease in investment. According to option (c), the transaction appears in expenditure as an increase in consumption in 2014 offset by a decrease in net exports. Option (d) represents the transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in consumption offset by a decrease in investment. According to option (e) yes, it contributes $1000 to US GDP in 2014. The $6000 purchase price exceeds the price paid by the used car dealer. The difference represents value added by the dealership - this is a service that should be counted as part of GDP.

8 0

4 years ago

The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating income In

sergiy2304 [10]

Answer:

A.)

Retail division = 21.95%

Commercial division = 19%

Internet division = 26%

B.) INTERNET DIVISION HAS THE HAS THE HIGHEST RETURN ON INVESTMENT.

Explanation:

- - - - - - - - - - - - operating - - - - - - invested

Retail - - - - - - - 180,000 - - - - - - - 820,000

Commercial - - 81,700 - - - - - - - - 430,000

Internet - - - - - 83,200 - - - - - - - - 320,000

A.)

return on investment ;

Operating income ÷ invested asset

Retail division (180,000 ÷ 820,000) × 100 = 21.95%

Commercial division (81700 ÷ 430000) × 100 = 19%

Internet division (83200 ÷ 320000) × 100 = 26%

B.) Interest division has the most residual income.

3 0

3 years ago

An increase of $100,000 in inventory would result in a(n) Increase in bonds payable. Decrease of net cash flow. Decrease in mark

ki77a [65]

Answer:

Decrease of net cash flow

Explanation:

Underthe indirect method, we calculate the cash flow based on the change in working capital:

The inventory, which is an asset will be purchased with cash or cash equivalent. Therefore, an increase on inventory produce a decrease of net cash flow.

If the inventory is purchased on account then, It will increase account payable, which represent an increase on the net cash flow. This generates a net effect of zero, 100,000 for account payable - 100,000 for inventory.

Which is what happens when purchase on account are made.

However, here we are asked for an increase on inventory only. We should simply state that this will represent a decrease in the cash flow for 100,000.

5 0

3 years ago

The effects of depreciation to the entire domestic economy

suter [353]

Answer:

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Explanation:

Sans Yshhsnhhhshhnshhhjujusjuujejuujujijji

8 0

3 years ago

A year's tuition at a state university cost $250 in 1972 when the CPI equaled 0.418. The cost of a year's tuition at the same st

bulgar [2K]

Answer:

Tuiton real cost incrased by 640%

Explanation:

We divide the nominal cost of each year by the CPI index to get the real cost on each year (adjusted by inflation)

250 / 0.48 = 520,8333

8,000 / 2.40 = 3.333,33

The real price of tuiton increase from 520.83 to 3,333.33 which stnad for a percentage increase of:

3,333.33 / 520.83 = 6,4 = 640%

3 0

3 years ago