Question: As a company's fixed costs decrease in relation to its variable costs, its operating leverage will O behave in no predictable manner. O stay

As a company's fixed costs decrease in relation to its variable costs,

As a company's fixed costs decrease in relation to its variable costs, its operating leverage will O behave in no predictable manner. O stay the same. O decrease. O increase. Save for Later

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Assume a company's activity-based costing system included three expenses: Vehicle operating expenses, $300,000; Vehicle depreciation, $155,000; and Custome service salaries, $210,000. These costs...

I have my final here with 32 questions I have answered them all and just want to make sure I am correct here is link along with in text 1. Business risk refers to 1 Use of accelerated depreciation...

9)Which of the following statements is not true? Companies that have higher fixed costs relative to variable costs have higher operating leverage. Operating leverage refers to the extent to which a...

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,000 units at $225 each) $2,250,000...

When considering disaster recovery, it has been said that "Different types of disasters produce different types of debris." In our discussion this unit, please analyze this statement, and provide...

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) $ 2,160,000...

Which of the following can be considered as the limitations of using average rate of return for investment appraisal? Corporate Finance Question - 1/55 Which of the following can be considered as the...

Question 1 (1 point) Which of the following statements describes Black Fly's process costing system? Question 1 options: Direct materials and direct labour are traced to each specific order. The...

125(3) Q1. If sales are $820,000, variable costs are 68% of sales, and operating income is $260,000, what is the contribution margin ratio? a. 53% b. 38% c. 47% d. 32% Q2. Which of the following...

This assignment is very urgent! Be as Accurate as possible providing explanations to each answer. Chapter 1 1.Managerial Accounting and Financial Accounting differ in the following way: A. Financial...

The higher cost for a refundable airline ticket for business travelers can be explained by: Select one: a. Price discrimination b. Marginal revenue vs. marginal cost c. Indirect price discrimination...

An investor now tells you that if you leave your money in as long as 10 years, you will see an even greater return, so you would like to compare the 5-year and 10-year returns of a random sample of...

Paraphrase the following: 1 . Existence of a latent defect at the time of conclusion of the contract. 2 . Renders a thing less useful or effective. 3 . Is so serious that a reasonable person would...

BVC wrote off a $10,000 receivable on 12/23/XX. Record the journal entry for the write-off. BVC Supplies Inc. sells exercise equipment. BVC notes that at December 31, 20XX, it has the following aging...

A. What would the bad debt expense be using the sales method instead of aging method, if the expected uncollectible rate was 2.0%? B. Net receivables using the sales method (after adjustment):

Using only the income statement accounts, prepare a proper income statement. Don't forget to include section captions, properly labeled totals, and subtotals. If you have done this properly, you...

Molzahn Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has...

BVC Supplies Inc. sells exercise equipment. BVC notes that at December 31, 20XX, it has the following aging schedule of Accounts Receivable. 20XX Sales were $3,000,000. The amount in the allowance...

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Relate the three levels of priority planning to capacity planning. Describe each level in terms of the detail and the time horizons used.

What is capacity requirements planning? At what level of the priority planning process does it occur?

What are the tools and techniques to acquire innovative and inspiring ideas?