What is meant by operating leverage?
Question:
What is meant by operating leverage?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (6 reviews)
Operating leverage measures the impact on net i...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
Question Posted:
Students also viewed these Business questions
-
Define the term margin of safety. Explain what is meant by the term operating leverage. What impact does an increase in the margin of safety have on risk? What impact does an increase in leverage...
-
Consolidated Industries is studying the addition of a new valve to its product line. The valve would be used by manufacturers of irrigation equipment. The company anticipates starting with a...
-
PneumoTech, Inc. is studying the addition of a new valve to its product line. The valve would be used by manufacturers of pneumatic equipment. The company anticipates starting with a relatively low...
-
A clinical study is established to determine if the results of a screening stress test can be used as a predictor of the presence of heart disease. The study enrolls 100 participants who undergo a...
-
Use f(x) = 1 - x2 to graph each of the transformations below. a. g(x) = - f (x b. h(x) = - 2f (x) c. (x) = - 3 + 2f (x)
-
Alpha and Beta were in partnership sharing profits in the ratio 2:1 respectively, after allowing salary at 3,000 per month to Beta and interest on capital at 6% per annum. No interest is charged on...
-
A Pepsi promotion encouraged consumers to collect Pepsi points and redeem them for merchandise. If they did not have quite enough points for the prize they wanted, they could buy additional points...
-
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations: The company uses the number of jobs as its measure of...
-
Eyeone and SafetyTwo are a cournot duopoly. Inverse demand function of P=160-2Q where total output is Q=Q1+Q2, Eyeone (Q1) SafetyTwo(Q2). Monthly cost is estimated as C=4Q for both. Eyeone is...
-
Shafer Company has gathered data on its overhead activities and associated costs for the past 10 months. Theodore, a member of the controllers department, has convinced management that overhead costs...
-
Data for Hermann Corporation are shown below: Fixed expenses are $40,000 per month, and the company is selling 2,000 units per month. Required: 1. The marketing manager argues that a $4,000 increase...
-
Mauro Products has a single product, a woven basket whose selling price is $54, and variable cost is $45 per unit. The companys monthly fixed expenses are $26,550. Required: 1. Compute the companys...
-
Keith has the following copy sales invoices: Required Prepare the appropriate day book and post the entries to the ledger accounts. Indicate the ledgers used. Sales invoice no. 34 35 36 37 Customer...
-
You are the marketing and communications director for a large chain of retail stores. One of your stores was recently hit by a tornado and the concrete walls fell in, crushing dozens of people to...
-
Think of a business idea or consider an idea you already have. Go over the template presented in this assignment to find out what exactly needs to be included in your plan. Please pay attention to...
-
How can students use all the knowledge gained from psychology courses in the world to develop an Applied Psychology Project?
-
Suppose the US is on a gold standard and the UK is on a silver standard. Is that more like a fixed exchange rate between the US dollar and the British pound, or more like a floating exchange rate?...
-
Discuss how to measure the effectiveness of improvement actions and sustain the gains ? Explain.
-
The Ombudsman Foundation is a private not-for-profit organization providing training in dispute resolution and conflict management. The Foundation had the following pre-closing trial balance at...
-
Using the theoretical sampling strategy, how many samples of size 4 (n = 4) can be drawn from a population of size: (a) N = 5? (b) N = 8? (c) N = 16? (d) N = 50?
-
Cherokee Inc. is a merchandiser that provided the following information: Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Amount Number of units...
-
Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions...
-
The Excel worksheet form that appears below is to be used to recreate portions of Review Problem 1 relating to Dexter Corporation. Download the workbook containing this form from Connect, where you...
-
Given the info below answer the question Inventory 12/31/25 $60,100 Cost of Goods Sold $221,463 Common Stock 74,510 Selling Expenses 15,783 Retained Earnings 45,810 Administrative Expenses 37,696...
-
Greyson Construction has the following account balances at the end of the e year. Accounts Equipment Accounts payable Salaries expense Common stock Land Notes payable Service revenue Balances $24,500...
-
A. Determine the internal forces at sections C, D1 and D2 2kN/m k 2m C 4m Figure 2 e=0.2m 8kN B D D 2m B. Construct bending moment diagram of the beam shown in figures 15kN 4kN/m B D F E (1) (2)...
Study smarter with the SolutionInn App