What is operating leverage? What does it mean if a company has a degree of operating leverage
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (21 reviews)
Operating leverage predicts the effects that fixed costs have on c...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Question Posted:
Students also viewed these Managerial Accounting questions
-
Kosko Company has a degree of operating leverage of 8. Ace Company has a degree of operating leverage of 4. Interpret these measures.
-
Pine Company has a degree of operating leverage of 8. Fir Company has a degree of operating leverage of 4. Interpret these measures.
-
Acorn Company has a degree of operating leverage of 8. Oak Company has a degree of operating leverage of 4. Interpret these measures.
-
The last two decades have taught us that when it comes to financial deregulation, it is possible to have too much of a good thing too quickly. Financial deregulation has often taken place...
-
Carbon dioxide from the atmosphere weathers, or dissolves, limestone (CaCO3) by the reaction CaCO3(s) + CO2(g) + H2O(l ) CA2+(aq) + 2HCO3(aq) Obtain Ho for this reaction. See Table 6.2 for the data.
-
The summarized balance sheet of Demiwood Ltd for 31 December 20X0 is shown below. On 1 January 20X1 Demiwood Ltd bought out the McMaltby Company which was a private company with a summarized balance...
-
If in problem 16.5 the process is improved so the standard deviation is .0035, is the process capable now? LO.1
-
Sally and Charles Heck received the following dividends and interest during 2016: Assuming the Hecks file a joint tax return, complete Schedule B of Form 1040 for them for the 2016 tax year. Do not...
-
Use the formula for computing future value using compound interest to determine the value of an account at the end of 10 years if a principal amount of $15,000 is deposited in an account at an annual...
-
There is a separate haircut calculated for each foreign (i.e., non-USD) currency. The first thing we need to do to calculate the haircut on a given currency is to figure out the firm's total exposure...
-
What are the three approaches to calculating the sales required to achieve the target profit? Give the formula for each one.
-
What is a fixed cost? Give an example.
-
You are saving for the college education of your two children. They are two years apart in age; one will begin college in 15 years, the other will begin in 17 years. You estimate your childrens...
-
Tristan Walker of Walker & Company says, "We are only going to design, develop, and test products and services uniquely tailored to our community's needs. I get it. I'm a part of the community we are...
-
Ace Cosmetics Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000;...
-
7. At this point you now know information about both the horizontal and the vertical components of the projectile's velocity. In the space below, draw a diagram of the vector components of Vx and...
-
Complete autonomy in how you demonstrate the following criteria. In this module, we talked more about leadership. We discussed the differences between leadership theory which is a well-substantiated...
-
Accustart Ltd. acquired 38% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.76 million for 144,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that...
-
Which job has the highest SPS? Which core job characteristics best explain why some jobs have high scores and other jobs have low scores? Write down the scores for the four jobs in an Excel file on...
-
Write a paper detailing a geographic information system (GIS) of your own design that would utilize data in an original manner.
-
Identify the level of measurement (nominal, ordinal, interval, ratio) for each of the following sets of data. a. Numbers on uniforms that identify players on a basketball team b. Student rankings of...
-
Theodore McMahon opened a law office on April 1, 2024. During the first month of operations, the business completed the following transactions: Requirements 1. Record each transaction in the journal,...
-
Beth Stewart started her practice as a design consultant on November 1, 2024. During the first month of operations, the business completed the following transactions: Requirements 1. Record each...
-
The trial balance of John Menning, CPA, is dated March 31, 2024: During April, the business completed the following transactions: Requirements 1. Record the April transactions in the journal using...
-
Indicate whether the following managerial policy increases the risk of a death spiral:Use of low operating leverage for productionGroup of answer choicesTrueFalse
-
It is typically inappropriate to include the costs of excess capacity in product prices; instead, it should be written off directly to an expense account.Group of answer choicesTrueFalse
-
Firms can avoid the death spiral by excluding excess capacity from their activity bases. Group of answer choicesTrueFalse
Study smarter with the SolutionInn App