Answer:
1.8
Explanation:
Sales= $60
Variable cost= $21
Quantity= 3,500 pairs of shoes
Fixed operating cost= $58,500
The first step is to calculate the total contribution margin
= sales-variable cost × Quantity
= $60-$21 × 3500
= $39 × 3500
= $136,500
The operating income can be calculated as follows
= Sales - variable cost × Quantity - fixed operating costs
= $60-$21×3500-58,500
= $136,500-58,500
= $78,000
Therefore the degree of operating leverage can be calculated as follows
= Total contribution margin/Operating income
= 136,500/78,000
= 1.8
Hence the degree of operating leverage is 1.8
1. Know your assets and liabilities
2. Calculate your expenses and income
3. Manage your cashflow
4. Do a good investment (don’t invest in unnecessary things)
5. Learn more or study
Answer:
Real GDP growth increases only in the short run, and the inflation rate increases in both the short run and the long run.
Explanation:
An increase in the growth rate of money supply will result in an increase in inflation in both the short run and the long run.
Long run growth of the real GDP growth depends on the effective use of resources and technology, not the money supply.
A small increase in the money supply is always needed to support economic growth, that is why one of the few ideas that most economists agree upon is that the inflation rate should be between 1.5 - 2% per year.
Answer:
a. Fuel Interest on company-issued bonds FIXED
b. Shipping charges VARIABLE
c. Payments for raw materials VARIABLE
d. Real estate taxes FIXED
e. Executive salaries FIXED
f. Insurance premiums FIXED
g. Wage payments VARIABLE
h. Depreciation and obsolescence charges FIXED
i. Sales taxes VARIABLE
j. Rental payments on leased office machinery FIXED
Explanation:
Fixed costs are the cost of an organization that don´t change with the amount of production. So , if the production is 0, this cost will exist anyway. For example: real estate taxes, rental
A tax imposed on apples will be paid largely by THE SELLERS OF THE APPLES. The demand for apples being elastic means that small changes in price will cause large changes in quantity consumed. The supply for apples being inelastic means that the quantity supplied of apples is unaffected when the price of apple changes. This means that because of the imposed tax, the price of the apple will probably increase but since an increase in price will reduced the quantity bought, the sellers has to maintain the original price of the apples. In this case, the sellers of the apple will bear the larger parts of the imposed tax
