A high proportion of Company Xs total costs are variable with respect to units sold; a high
Question:
A high proportion of Company X’s total costs are variable with respect to units sold; a high proportion of Company Y’s total costs are fixed with respect to units sold. Which company is likely to have a higher degree of operating leverage (DOL)? Explain
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
Company X is likely to have a higher degree of operating leverage DOL because a high proportion of i...View the full answer
Answered By
BillClinton Muguai
I have been a tutor for the past 5 years. I have experience working with students in a variety of subject areas, including computer science, math, science, English, and history. I have also worked with students of all ages, from elementary school to college. In addition to my tutoring experience, I have a degree in education from a top university. This has given me a strong foundation in child development and learning theories, which I use to inform my tutoring practices.
I am patient and adaptable, and I work to create a positive and supportive learning environment for my students. I believe that all students have the ability to succeed, and it is my job to help them find and develop their strengths. I am confident in my ability to tutor students and help them achieve their academic goals.
0.00
0 Reviews
10+ Question Solved
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Question Posted:
Students also viewed these Business questions
-
A high proportion of Company As total costs are variable with respect to units sold; a high proportion of Company Bs total costs are fixed with respect to units sold. Which company is likely to have...
-
Which of these projects is likely to have the higher asset beta, other things equal? Why? a. The sales force for project A is paid a fixed annual salary. Project Bs sales force is paid by commissions...
-
Which company is likely to have lower total risk, General Electric or Coca-Cola? Why?
-
Craps is a dice game in which two fair dice are cast. If the roller shoots a 7 or 11 on the rst roll, he or she wins. If the roller shoots a 2, 3, or 12 on the rst roll, he or she loses. (a) Compute...
-
Mariel has a $60,000 basis in her partnership interest just before receiving a parcel of land as a liquidating distribution. She has no remaining precontribution gain and will receive no other...
-
Computer Project Exercises In developing the exercises, trade-offs had to be made to enrich the learning experience. One of the major problems students initially encounter is data and detail...
-
North Shore Architectural Stone, Inc., a company that installs limestone in residential and commercial buildings, agreed to supply and install limestone for a property owned by Joseph Vitacco. North...
-
Capitalization of Interest On December 31, 2009, Hurston Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2010, the company made the following...
-
1. Tony stark is trying to talk pepper Potts into attending an event with him. Pepper does not want to attend because she feels that she and will be much older than most of the younger crowd...
-
A Venture Capitalist presents Arbuckle, Inc., the shoes manufacturer with the following term sheet for a series A funding round: Amount $5 million Security Convertible Preferred Mandatory on IPO >...
-
Refer to the information from QS 22-6. How will the break-even point in units change in response to each of the following independent changes in selling price per unit, variable cost per unit, or...
-
BTN 22-9 Access and review Nokias Website (www.Nokia.com) to answer the following questions. Required 1. Do you believe that Nokias managers use single product CVP analysis or multiproduct break-even...
-
Assume that Nathan County has levied its current year taxes and all revenue recognition criteria for property taxes have been met. The amount levied was $775,000, of which 2% is deemed to be...
-
Caroline Corp purchased the assets of Hayden Inc. for $7 million cash. The fair value of Hayden Inc's assets was 3.4 million and the purchased company had total liabilities of $350,000. How much...
-
2. Your company is deciding between 2 different projects. The firm's cost of capital is 8% Project A: The initial investment is $1,000,000. The project will last for 4 years and the cash flows are...
-
a) Verify the above differential equation is not exact. b) Find an integrating factor that will make the differential equation exact. Verify your work. c) Solve the differential equation (implicit...
-
what am i doing wrong? import java.util.Scanner; public class LabProgram { public static void main(String[] args) { scanner sc = new scanner(scanner.in); double milesPerGallon =...
-
In 2020, oil and gas prices plummeted, which left major oil and gas companies, such as Shell (a British multinational company listed on the London Stock Exchange) and Exxon Mobil (an American...
-
Find the distance from the center that the rate of flow is 30 centimeters per second. Round answer to two decimal places. Problem67 The French Physician Poiseuille was the first to discover that...
-
Information graphics, also called infographics, are wildly popular, especially in online environments. Why do you think infographics continue to receive so much attention? How could infographics be...
-
Following are selected data from Samsung, Apple, and Google. Required 1. Compute Samsungs return on total assets for the two most recent years. 2. For the current year, is Samsungs return on total...
-
Assume that you are Jolee Companys accountant. Company owner Mary Jolee has reviewed the 2019 financial statements you prepared and questions the $6,000 loss reported on the sale of its investment in...
-
Access the July 28, 2016, 10-K filing (for year-end June 30, 2016) of Microsoft (ticker: MSFT) at SEC.gov.Review its note 4, Investments. Required 1. How does the cost-basis total amount for its...
-
(a) Simplify the following summation to produce a closed form. Show your work, clearly stating when you apply each summation identity. ) (b) Convert the following recurrence into a summation by...
-
1. Write a Python program that declares two lists. a. Set the values in the first list to [-3, 0, 3, 6] by initializing on the line where the list is declared. Print the elements of the list using...
-
63. [5 points] As part of the program in Java, use the if-else-if statement to code the following flowchart: assign grade as a single character A when the score is greater than 89; otherwise, assign...
Study smarter with the SolutionInn App