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Law Incorporation [45]
4 years ago
9

ATech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year ear

ned the same profits, $4 million. But it operates with higher fixed costs of $8 million and lower variable costs.
a. Which firm has higher operating leverage
b. Which firm will likely have higher profits if the economy strengthens?
Business
1 answer:
NISA [10]4 years ago
8 0

Answer:

a. ZTech will have a higher operating leverage because it has a higher fixed cost.

b. ZTech will have a higher profit since it has a higher operating leverage if the economy strengthens.

Explanation:

Operating leverage measures the the extent to which a firm uses fixed cost to finance its operations. The higher the fixed cost, the higher the degree of operating leverage

If the economy strengthens, the firm with a higher degree of operating leverage earns a higher profit.

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Answer:

Let suppose the value of property is 100 dollars currently.

The price of a certain property increased by 10% in the first year, means the value of property at this point is (100 *1.1) 110 dollars.

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3 years ago
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den301095 [7]

Matching each scenario to the insurance needed for protection.

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<h3>What is insurance?</h3>

Insurance can be defined as a coverage that help to cover cost or expenses in case of unforeseen or unexpected circumstances such as:

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Therefore Tyrell's son has leukemia and will need cancer  medications- Health insurance.

Learn more about insurance here:brainly.com/question/25855858

#SPJ1

8 0
2 years ago
People who make goods and services are called _____ . <br> consumers<br> producers<br> investors
Aneli [31]
People who make goods and services are called PRODUCERS.

They are called producers because they produce the goods and services needed by the consumers.

Consumers are people who requires the goods and services provided by the producers.


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3 years ago
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What does an exchange rate tell you?
saw5 [17]

Answer:

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