Operating Leverage Airlines offer an example of an industry in which the degree of operating leverage is

Question:

Operating Leverage Airlines offer an example of an industry in which the degree of operating leverage is fairly high. Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

See More Books

Question Posted: Apr 28, 2011 03:11 AM

See More Questions

Asha Ltd, issued shares of Rs. 100 each at a premium of 25% mamta who has Rs. 2,000 shares of Asha ltd. Failed Rs. 5. Premium was taken at the company. On forfeiture of Mamta's shares, the amount to...
Give an example of an industry that would be characterized by (a) A high asset turnover ratio and a low profit margin ratio, and (b) A low asset turnover ratio and a high profit margin ratio.
What is an example of an industry that would need to spend a minimum amount on advertising to be competitive? On research and development?
Suppose that we want to know the mass of gasoline in an automobile's gas tank. The tank has a volume of 70 L, and a handbook of fluid properties states that the density of gasoline is 736 kg/m. (1000...
An hourglass is turned over, and the sand is allowed to pour from the upper half of the glass to the lower half. If the hourglass is resting on a scale, and the total mass of the hourglass and sand...
If a space vehicle circled Earth at a distance equal to the EarthMoon distance, how long would it take for it to make a complete orbit? In other words, what would be its period?
Suppose that aggregate time 1 consumption can only take on the values 1, 2, ... , K for some finite integer K. Assume that European call options on aggregate consumption are traded for any exercise...
It takes a force of 80.0N to compress the spring of a toy popgun 0.200m to load a 0.180-kg ball. With what speed will the ball leave the gun?
In testing controls over purchases, an auditor most likely would determine that the person who receives inventory a. Posts to the general ledger to reflect the receipt of goods. b. Already has...
The company has made the following profit-sharing contributions to the retirement plan for Archie and Elaine for each of the related years. 2021 2020 2019 2018 2017 2016 Balance 1/1/16 Archie None...
Operating Leverage At one time at least, many Japanese companies had a no-layoff policy (for that matter, so did IBM). What are the implications of such a policy for the degree of operating leverage...
Break-Even As a shareholder of a firm that is contemplating a new project, would you he more concerned with the accounting break-even point, the cash break-even point, or the financial break-even...
Describe the uses of a job order cost sheet. LO1
The Role of Leadership in Shaping Organizational Culture Recent research stated that [c]ompanies with an established organizational culture that includes strong capabilities for change, commitment to...
Unscheduled absences by clerical and production workers are an important cost in many companies. Reducing the rate of absenteeism is, therefore, an important goal for a company's human relations...
Many of the largest tech firms, including Google, Apple, Amazon, and Microsoft, have spent hundreds of millions of dollars to improve their information technology infrastructure. Now, these companies...
In the business sense, a product refers to a commodity available for purchase, encompassing both services and tangible or intangible items. It may exist in physical, virtual, or cyber forms. Every...
Data Exploration and Multiple Linear Regression (MLR) using SAS. The "College" data set contains the statistics for many US Colleges from 1995 issue of US News and World Report. It has 777...
The new president promptly stepped up production to an annual rate of 30 million units. Sales for year 2 remained at 10 million units. The resulting Brassinni Company absorption-costing income...
Construct a 4 x 25 design confounded in two blocks of 16 observations each. Outline the analysis of variance for this design.
You are given the following regarding stock of Widget World Wide (WWW): (i) The stock is currently selling for $50. (ii) One year from now the stock will sell for either $40 or $55. (iii) The stock...
Corporate ownership varies around the world. Historically individuals have owned the majority of shares in public corporations in the United States. In Germany and Japan, however, banks, other large...
Critics have charged that compensation to top managers in the Units States is simply too high and should be cut back. For example, focusing on large corporations, Larry Ellison of Oracle has been one...
What does liquidity measure? Explain the trade-off a firm faces between high liquidity and low liquidity levels.
As a Financial Analyst in the Finance Department of Zeta Auto Corporation they are seeking to expand production. The CFO asks you to help decide whether the firm should set up a new plant to...
Chapter 4 When an Auditor finds misstatements in entities financial statements which may be the result of fraudulent act, what should be the role of an auditor under that situation? (2 Points)
Suppose the following input prices are provided for each year: Required: $

Operating Leverage Airlines offer an example of an industry in which the degree of operating leverage is

Question:

Step by Step Answer:

Fixed costs are relatively high because airlines are relativ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions