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

Question

1 Approved Answer

QUESTION 12 If a company has a degree of operating leverage of 3.0 and sales increase by 25%, all else being equal then: a. operating

image text in transcribed
QUESTION 12 If a company has a degree of operating leverage of 3.0 and sales increase by 25%, all else being equal then: a. operating profit before tax will increase by 75% b.total variable costs will not change total variable costs will increase by 75% od. operating profit before tax will increase by 25%

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

An Environmental Audit Primer Student Guide

An Environmental Audit Primer Student Guide

Authors: Velsoft Training Materials, Inc.

1st Edition

1774550393, 978-1774550397

More Books

Students also viewed these Accounting questions

Question

★★★★★
Does the string that supports a pendulum bob do work on the bob as its swings to and fro? Does the force of gravity do any work on the bob?

Answered: 1 week ago

Question

★★★★★
Please read the following setup and answer the 5 questions at the end. Lakeside Hospital A hospital just can't afford to operate a department at 50 percent capacity. If we average 20 dialysis...

Answered: 1 week ago

Question

★★★★★
1. For the M/M/1 queue, compute (a) the expected number of arrivals during a service period and (b) the probability that no customers arrive during a service period. Hint: Condition.

Answered: 1 week ago

Question

★★★★★
Appliance Center is an experienced home appliance dealer. Appliance Center also offers a number of services together with the home appliances that it sells. Assume that Appliance Center sells ovens...

Answered: 1 week ago

Question

★★★★★
QUESTION 12 If a company has a degree of operating leverage of 3.0 and sales increase by 25%, all else being equal then: a. operating profit before tax will increase by 75% b.total variable costs...

Answered: 1 week ago

Question

★★★★★
Safari File Edit View History Bookmarks Window Help . . . D - 0 1 1 5 7 0 Q 2 4 Tue Oct 18 12:42 PM webassign.net C 121 Quiz ch 7 - PHY 101 General Physics | Lecture (Fall 2022, Gregg) Your best...

Answered: 1 week ago

Question

★★★★★
If you have further questions, kindly ask. This is about share options On January 1, 2019, Symphony grants its president the right to choose either 10,000 ordinary shares or to receive cash payment...

Answered: 1 week ago

Question

★★★★★
One of Arianna's co-workers repeatedly makes graphic comments about her body. He also texts nude images of himself to her cell phone. Arianna has likely experienced Quid pro que harassment. Hostile...

Answered: 1 week ago

Question

★★★★★
Does M - KOPA have the basis for a sustainable competitive advantage? If so , what is that basis? If not, why not?

Answered: 1 week ago

Question

★★★★★
Scenario 4: Dresses-We-Sell Dresses-We-Sell offers a line of upscale evening dresses in a boutique. The store charges $500 per dress and sales average 20 units per week. Currently, they order 80...

Answered: 1 week ago

Question

★★★★★
The standard overhead cost for a product manufactured by SCOMAN1 Corporation is given below: Variable overhead 2hrs@P10/hr Fixed overhead 2hrs@P5/hr Total Standard overhead rate PER UNIT P 20 10 P 30...

Answered: 1 week ago

Question

★★★★★
(Appendices) PURCHASES, PURCHASE RETURNS, AND PAYMENT FOR PURCHASES. Jordan Footwear sells athletic shoes. During April Jordan made the following purchases on credit with terms 3/15, n/40: LO4 Assume...

Answered: 1 week ago

Question

★★★★★
(Appendices) A CLASSIFIED INCOME STATEMENT FOR A MERCHANDISING BUSINESS. For each of the cases presented below, compute the missing amounts: LO8

Answered: 1 week ago

Question

★★★★★
(Appendices) PURCHASES, TRANSPORTATION-IN, AND PURCHASE RETURNS. Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses periodic inventory accounting. Alpharack engaged in...

Answered: 1 week ago

Previous Question Next Question