Changes in sales cause changes in profits. Would the profit change associated with sales changes be larger
Question:
Changes in sales cause changes in profits. Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage? Explain your answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 91% (12 reviews)
Operating leverage is the extent to which fixe...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
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Question Posted:
Students also viewed these Corporate Finance questions
-
Suppose that the depreciation of EA/B was 7% over the past year, and prices in country A increased by 4% from this time last year. Assuming relative PPP holds, what was the rate of inflation in...
-
Would the U.S. balance-of-trade deficit be larger or smaller if the dollar depreciates against all currencies, versus depreciating against some currencies but appreciating against others? Explain.
-
Will the future value be larger or smaller if we compound an initial amount more often than annually, for example, every 6 months, or semiannually, holding the stated interest rate constant? Why?...
-
B-bol King Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market will be...
-
Should domain name hosting companies be liable for revenge porn?
-
A parent has two children living in cities with different costs of living. The cost of living in city B is 3 times the cost of living in city A. The child in city A has an income of $2,000 and the...
-
For the following set of scores, calculate the Pearson correlation coefficient and interpret the outcome. Budget Increase Number of Clients Served 7% 3% 11% 14% 5% 13% 7% 26% 2% 8%
-
A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of...
-
= 2. (18 Points) Two strain gages are mounted on a 16 oz can of Red Bull (223 calories, 148 mg caffeine) with internal cylindrical dimensions of R 1.1875 in and height H=6.52 in. The wall thickness...
-
Chris Pearson is running a tennis tournament and is in the process of scheduling the umpires for each match in todays rounds. There are five matches to be played today, and there are six umpires...
-
Determine the height h of block B so that the rod is in neutral equilibrium. The springs are unstretched when the rod is in the vertical position. The block has a weightW. B.
-
Would each of the following increase, decrease, or have an in determinant effect on a firms break-even point (unit sales)? a. The sales price increases with no change in unit costs. b. An increase in...
-
A cylinder contains 4.0 moles of a monatomic gas at an initial temperature of 27 C. The gas is compressed by doing 560 J of work on it, and its temperature increases by 130 C. How much heat flows...
-
What is a project risk? What strategies do project managers use to assess, monitor, and communicate project risks to stakeholders? This week's required readings and Weekly Lecture can also be used to...
-
DVMS Power Electronics Private Limited: Capacity Analysis Basing it on the case mentioned above, kindly answer the following questions: 1.) What are the issues? 2.) What are the internal and external...
-
You have now seen three different examples of Theory of Change Why is it useful to have different definitions of a Theory of Change? Would it be useful to have a common definition of a Theory of...
-
Malcolm, a relatively new manager, has handed in his performance evaluations. The HR Manager notices that most of his employees have received 3 out of 5 on the rating scale, which is 'Satisfactory"....
-
Use the following project status information to calculate each of the requested EVM numbers below. The project status is reported at the end of week 13. Task A B C D E F Budget Cost $5,000 $8,500...
-
An industry that most likely has both high barriers to entry and high barriers to exit is the: A. Restaurant industry. B. Advertising industry. C. Automobile industry.
-
According to a recent survey, 40% of millennials (those born in the 1980s or 1990s) view themselves more as spenders than savers. The survey also reveals that 75% of millennials view social...
-
Does a computer system with high generality tend to have higher quality than other systems? Explain.
-
A mining company is deciding whether to open a strip mine, which costs $2 million. Net cash inflows of $13 million would occur at the end of Year 1. The land must be returned to its natural state at...
-
Your division is considering two projects. Its WACC is 10%, and the projects? after-tax cash flows (in millions of dollars) would be as follows: a. Calculate the projects? NPVs, IRRs, MIRRs, regular...
-
Draw Project Ps NPV profile. Does Project P have normal or non-normal cash flows? Should this project be accepted? Explain.
-
Question: 10/25/YR1-- YSR Inc. acquires supplies to be used by its employees. The supplies cost $2,000. Although YSR Inc. has received the supplies, it will not pay for the supplies until November,...
-
Question: September 2008.\ Sep. 1 Issued 12,000 shares of $1 par value common stock for $82 per share.\ Sep. 2 Declared a 20 percent stock dividend. There were 42,000 shares of common stock...
-
Question: Assume that Trump acquired Clinton on January 2, 2001 Trump issued 60,000 new shares of its common stock valued at $4.00 per share for all of the outstanding stock of Clinton. Immediately...
Study smarter with the SolutionInn App