Answer: 5
Explanation:
The measure used to evaluate a change in company 's operating income as a result of relative change in sales is called degree of operating leverage of the company. The operating leverage has two components that is fixed cost and variable cost.
.
Operating income of a company is denoted as EBIT, that is, earnings before interest and tax.
.
FORMULA = 
=
= 5
note :-
percentage change in EBIT =
= 50%
Answer:
B) Accept Project A and reject Project B.
Explanation:
We use excel or a spreadsheet to calculate this ratio.
See document attached.
Cash flow will solve this problem.
At moment 0 we have the investment cost or initial cost, in this case $125,000 or $135,000. From period 1 to period 3, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
We use all the result (positive and negative) in Net cash flow to get the IRR.
<u>Project A</u>
Internal Rate of Return (IRR) 18,86%
<u>Project B</u>
Internal Rate of Return (IRR) 13,78%
So we should accept Project A and reject Project B, because in project A the IRR is bigger of required return ( 16%), we reject project B because the IRR is smaller.
It is the underground economy. The underground economy alludes to illicit financial action. Exchanges in the underground economy are illicit either in light of the fact that the great or administration being exchanged is itself unlawful or in light of the fact that a generally licit exchange does not agree to government revealing necessities. The main class incorporates medications and prostitution in many wards.
James will need to decrease the marginal revenue to reduce his output.
<h3>What happens when marginal revenue equals marginal cost?</h3>
This is known as an economic equilibrium and there is no economic profit in such equilibrium.
To incur profit now, he will have need to decrease the marginal revenue to reduce his output
Therefore, the Option B is corrrect
Missing options <em>"will increase profits, will decrease marginal revenue, can charge a higher price."</em>
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Read more about marginal revenue
<em>brainly.com/question/10822075</em>
Answer: A. 2.05 B. 5.10 C. 0
Explanation: Payback period can be defined as the period under which the profits or savings in an investment can recover the initial outlay invested in that investment. In simple words we can say that it is the time required by an investment to pay for itself.
Pay back period is computed as follows :-

therefore,
A.
=2.05years
B.
=5.10years
C.
=0