FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If company A has a higher degree of operating leverage than company B, then: a. Company A has higher variable expenses. b. Company As profits

If company A has a higher degree of operating leverage than company B, then:

a.

Company A has higher variable expenses.
b.

Company As profits are more sensitive to percentage changes in sales.
c.

Company A is more profitable.
d.

Company A is less risky.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commercial Energy Auditing Reference Handbook

Commercial Energy Auditing Reference Handbook

Authors: Steve Doty

2nd Edition

1439851972, 978-1439851975

More Books

Students also viewed these Accounting questions

Question

★★★★★
Cooper Clinic, Inc., is preparing its statement of cash flows (indirect method) for the year ended September 30, 20X7. Consider the following items in preparing the company's statement of cash flows....

Answered: 1 week ago

Question

★★★★★
"Protective covenants protect the sharehold- ers' interests in cases of liquidation of assets." Do you agree? Explain.

Answered: 1 week ago

Question

★★★★★
72. a. For xed n, are there values of p (0 p 1) for which V(X) 0? Explain why this is so. b. For what value of p is V(X) maximized? [Hint: Either graph V(X) as a function of p or else take a...

Answered: 1 week ago

Question

★★★★★
Chen Chocolate Company's EPS in 2016 was $1.25, and in 2011 it was $0.75. The companys payout ratio is 50%, and the stock is currently valued at $37.75. Flotation costs for new equity will be 15%....

Answered: 1 week ago

Question

★★★★★
How would you react to your instructor's suggestion to incorporate a data component into sn assignment for your non-math-related course?

Answered: 1 week ago

Question

★★★★★
Posters.com is a small Internet retailer of high-quality posters. The company has $1,000,000 in operating assets and fixed expense of $150,000 per year. With this level of operating assets and fixed...

Answered: 1 week ago

Question

★★★★★
This is a "critical thinking" Partnership project. Perform some Internet research and read about the Diffusion of Innovation (Rogers, 1962) and the 5 types of Human Adopter Groups that must be...

Answered: 1 week ago

Question

★★★★★
Based on the WCDM screen, how can we compare Italy and Japan in terms of overall default risk on their debt? Japan has over 3x the total debt of Italy, and a worse credit rating, so its credit...

Answered: 1 week ago

Question

★★★★★
Briefly explain Feeding America (an organization) Operational Model Based on the various operational models (e.g., entrepreneurial support model, market intermediary model, market linkage model,...

Answered: 1 week ago

Question

★★★★★
Since the proposed medication is injectable are you planning on premediating your patients to avoid any potential injection related reactions?

Answered: 1 week ago

Question

★★★★★
2 . As we move forward with the workshop, we will discuss how important it is to communicate to your audience ( as Florence Nightingale did ) . What does the above graph / chart communicate? What are...

Answered: 1 week ago

Question

★★★★★
Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies business strategy. page 265

Answered: 1 week ago

Question

★★★★★
Conduct a needs assessment. page 269

Answered: 1 week ago

Question

★★★★★
Explain the recruiters role in the recruitment process, the limits the recruiter faces, and the opportunities available. page 212

Answered: 1 week ago

Previous Question Next Question