Define the term operating leverage and explain how it affects profits.
Question:
Define the term operating leverage and explain how it affects profits.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 44% (9 reviews)
Operating leverage is the condition whereby a small percentage increase in sales volume can prod...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
Define the term operating leverage and explain how it affects profits.
-
Define the term international business, and explain how it affects each of us.
-
Define intraperiod income tax allocation and explain how it affects the preparation of the income statement
-
Jackson Corporation has borrowed $2 million from a local bank under a long-term debt agreement whereby the loan has to be repaid in two years' time. The agreement was violated and the debt became...
-
What would be a good thesis statement about the causes that have increased childhood obesity
-
Find: a. b. c. d. e. f. Je* (5 - e*) dx
-
In a study of high school football players that suffered concussions, researchers placed the players in two groups. Players that recovered from their concussions in 14 days or less were placed in...
-
A vibrating string 50.0 cm long is under a tension of 1.00 N. The results from five successive stroboscopic pictures are shown in Fig. 15.39. The strobe rate is set at 5000 flashes per minute, and...
-
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 1. 145,000 shares of $11 par common stock. 2. 4,500 shares of $150 par, 8 percent, noncumulative preferred...
-
Rank the vectors in Figure 3-37 in order of increasing value of their x component. A.
-
How can knowing cost behavior relative to volume fluctuations affect decision making?
-
How is operating leverage calculated?
-
For a certain fluid flow problem it is known that both the Froude number and the Weber number are important dimensionless parameters. If the problem is to be studied by using a 1:15 scale model,...
-
Any training course on the essentials of customer service will advise you always to smile at customers and to make eye contact with them. In fact, it seems so commonsensical as to not need repeating....
-
What are biometric attributes and what are some of the ways in which stadiums use facial recogni- tion technology before, during, and after events.
-
Almost immediately after the Patient Protection and Affordable Care Act became law, the attorney general of Florida, joined by AGs from 12 other states, filed a lawsuit asking the courts to declare...
-
Officials of a large manufacturing company are concerned about the stagnant productivity theyve seen in the past year. Although sales have been good, employees in the companys manufacturing plant are...
-
How does the law protect trademarks, trade secrets, and copy rights?
-
Watches R Us specializes in designer watches and leather goods. Watches R Us uses the perpetual inventory system. Assume Watches R Us began June holding 10 wristwatches that cost $50 each. During...
-
Determine the reactions in supports A and D and connections B and C. Sketch its shear and moment diagram and determine the magnitude ankoration of the maximum shear and moment for every member. 18 3...
-
Sulfuric acid is the single most important industrial chemical. About 40 million tons are manufactured each year. Elemental sulfur is converted to sulfuric acid by the Contact Process as follows:...
-
Oasis Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate...
-
Instant Memories Inc. produces photographic paper for printing digital images. One of the processes for this operation is a coating (solvent spreading) operation, where chemicals are coated onto...
-
Olde Stone Mill Flour Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging...
-
Lake Incorporated and the River, Incorporated reported net incomes of $205,000 and $164,000, respectively, for the most recent fiscal year. Both companies had 41,000 shares of common stock issued and...
-
What effect Eventually, BREXIT will make on EU? How it will benefit UK? What will be the possible outcome?
-
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land Expenses to...
Study smarter with the SolutionInn App