When we say that some business activity has high operating gearing, what do we mean? What are

Question:

When we say that some business activity has high operating gearing, what do we mean? What are the implications for the business of high operating gearing?

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

Step by Step Answer:

Related Book For book-img-for-question

Accounting and Finance An Introduction

ISBN: 978-1292088297

8th edition

Authors: Peter Atrill, Eddie McLaney

See More Books

Question Posted: Feb 07, 2020 05:10 AM

See More Questions

1. What might be some other deterrents to ethical behavior in the business context, besides those discussed in this Focus on Ethics feature? 2. Can you think of a situation in which a business firm...
When we say that the corporation is treated legally as if it were a single person, we are making a statement that affects the nature of our democracy. A citizen is allowed to have freedom of speech...
Michelle Delatorre, the professional tennis player first introduced in the Integrative Problem in Chapter, has returned to your office at Balik and Kiefer to ask some questions about stock valuation...
Listed below is the income statement for Tom and Sue Travels, Incorporated. TOM AND SUE TRAVELS, INCORPORATED Income Statement for Year End ( in millions of dollars ) Net sales $ 1 9 . 6 0 0 Less:...
Outline a reasonable mechanism for the formation of tert-butyl methyl ether according to the preceding equation.
What accounts are needed to record the purchase of materials, labor, and overhead? LO.1
Levy Company and Guyer Books made the same equity investment200 shares of Watson Manufacturing at a cost of $12 per shareon November 18. On December 31, the market value of Watson had risen to $45...
Quints Fly Tying Corp. (QFT) and Marshalls Kiteboard Corp. (MKC) entered into a joint venture (JV) agreement on January 1, 20X3, that resulted in the creation of Live Life to Its Fullest Ltd. (LLF)....
Please attempt the below question Gainsworth Ltd is an ASX-listed company that specialises in video gaming technology. It was founded in 1999 by John Aristos and is the only Australian company...
Capstone Case: Sunrise Bakery Expansion The Sunrise Bakery Corporation was originally founded in Houston, TX in 1991 by Griffin Harris, who currently serves as the company's Chief Executive Officer....
Using the Internet, identify an international trade specialist and describe the services it provides companies with a global supply chain.
Complete the available-to-promise table below. PERIOD 1 2 3 4 ON HAND = 30 5 Forecast 100 50 100 50 100 50 Customer Orders 75 50 116 73 45 23 Master Production Schedule 100 50 100 50 100 50...
Stronger corporate governance legislation is emerging globally but true success will come from self-regulation, increased internal controls and the strong ethical corporate culture that organisations...
Caching. CPUs. Hard disk drives. Parallelism. Pipelining. RAM. Registers. Solid-state drives. Dinkleberg 1. (3 points) You know that neighbor who always one-ups you? Apparently, he just bought a...
Information for Question 1 and 2: The National Health Interview Survey is an annual national health survey of people living in about 35,000 randomly selected households in the United States. On the...
Q1. There is trampoline on the ground, and connected to spring of spring constant, k, on the bottom. You are holding a child of mass, M on a H tall building top (H is measured from the trampoline to...
SPSS for intermediate statistics extra problems solutions d. Approximately how much variance in consumers' tendency to purchase the product could be predicted from these variables? If you owned the...
A finance company uses the discount method of calculating interest. The loan principal is $5,000, the interest rate is 10%, and repayment is expected in two years. You will receive 4196.25 X from the...
a. What are the requirements for these five items for the next 13 weeks? b. Is Zurn carrying too much inventory? Zurn makes various plumbing products such as fixtures, faucets, drainage equipment,...
d) For die casting processes: 1. What are the most common metals processed using die casting and discuss why other metals are not commonly die casted? 2. Which die casting machines usually have a...
Segmental information relating to Turner plc for the year to 30 April 2018 is shown below: Required: Analyse the performance of each of the three main business segments for the year and comment on...
Segmental information relating to Dali plc for the year to 31 December 2018 is shown below: Required: Analyse the performance of each of the three main business segments for the year and comment on...
There are two different approaches to calculating goodwill arising on consolidation. What factors might influence a particular company to choose one basis rather than another?
Which investment should I choose? Bond A: BBB Corporate bond, Price=$1,100, Par=$1,000, Coupon rate=4% (semiannual coupons), 13 years to maturity Bond B: BBB Corporate bond, Price=$5,900, Par=$5,000,...
During October, total equivalent units of output were 86,000 using the weighted-average method. The information about the beginning and ending inventories for October were as follows: Units in...
Q12. PDQ has an expected sales volume of $1,000,000 with a variable cost ratio of 55%, and fixed costs of $200,000. What sales volume would be necessary to achieve a $100,000 after-tax profit when...

When we say that some business activity has high operating gearing, what do we mean? What are

Question:

Step by Step Answer:

If a companys fixed cost is higher in comparison to its variable ...View the full answer

Accounting and Finance An Introduction

Students also viewed these Business questions