Why is operating leverage as it pertains to risk important?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 20% (10 reviews)
Operating leverage comes from high fixed costs The greater th...View the full answer
Answered By
Charles Okinda
students should give all the instructions concerning the challenge that they face. they will get an immediate response because I am always online.
4.90+
753+ Reviews
1480+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Why is operating leverage viewed as a measure of risk?
-
a. What is the degree of operating leverage of Modern Artifacts (in Problem 14) when sales are $7,000? b. What is the degree of operating leverage when sales are $12,000? c. Why is operating leverage...
-
Modern Artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs are $1,000 per year and variable costs are $60 per unit If the project requires an initial...
-
1. If net profit is $47,025; depreciation is $2,200; accounts receivable increases $5,056; accounts payable increases $4,673; and inventory declines $850; what is the operating cash flow for the...
-
SDT Co. reports net income of $55,000. Partner salary allowances are Sweet $15,000, Drinian $5,000, and Tavros $5,000. Indicate the division of net income to each partner, assuming the income ratio...
-
Resistors for electronic circuits are manufactured on a high-speed automated machine. The machine is set up to produce a large run of resistors of 1,000 ohms each. To set up the machine and to create...
-
Rework Problem 10.14, part a, but exclude the region information. a. Comment on the difference in the models you have found. Is there indication that the region information substantially improves the...
-
In October, McEnroe Company reports 21,000 actual direct labor hours, and it incurs $115,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,000 hours. The...
-
Annapolis Corporation's trial balance included debits to expense accounts of $125,000, credits to revenue accounts of $231,000, and debits to the Dividends account of $50,000. Based on this...
-
Two adjusting entries are in the following general journal. Post these adjusting entries to the four general ledger accounts. The following account numbers were taken from the chart of accounts: 141,...
-
Contrast operating risk and financial risk.
-
Harry was deciding on the separation of outlays into nondiscretionary and discretionary. What advice would you offer him on the division as it relates to risk?
-
On June 7, 2013, Cheng and Morales, two recent graduates of Upper State University, formed a computer consulting firm. Cheng contributed an extensive, up-to-date computer installation, valued at...
-
What is the heat requirement to dilute an inlet aqueous stream of 50% NaOH, by weight, to a fi nal concentration of 10%?
-
Team compensation allows some individuals to work harder than others, yet receive the same pay. Do you agree or disagree? Defend your position.
-
Training programs are frequently the first items eliminated when management wants to cut costs. Why do you believe this occurs?
-
How can an organization develop a competitive advantage internally without the help of outsiders?
-
Financial statement analysis is considered useful for students in handling and analyzing case studies. Is this true? Why?
-
From the following partial mixed list, select the appropriate titles and prepare a stockholders equity section using the source-of-capital approach as shown in the Blueprint example for Ration...
-
we have to compute the letter grades for a course. The data is a collection of student records stored in a file. Each record consists of a name(up to 20 characters), ID (8 characters), the scores of...
-
Whats an asset allocation fund? How do these funds differ from other types of mutual funds?
-
If growth, income, and capital preservation are the primary objectives of mutual funds, why do we bother to categorize them by type?
-
What are automatic reinvestment plans, and how do they differ from automatic investment plans?
-
how to connect to oracle database from cpp file step by step? I use Visual Studio and Oracle Instant Client. ? Explain your answer
-
How to determine the storage configuration for a database server for 1000+ staff? The server runs Linux and will have an Oracle database server. The estimated databases currently consume about 8 TB...
-
1. Explain on the financial statement analysis. 2. Explain on EIGHT (8) financial ratio. 3. Describe FIVE (5) types of financial objectives.
Study smarter with the SolutionInn App