Business, 28.10.2019 23:31, williamlindley2

Which of the following statements is not true?
a. operating leverage refers to the extent to which a company’s net income reacts to a given change in sales.
b. when a company’s sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly.
c. when a company’s sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.
d. companies that have higher fixed costs relative to variable costs have higher operating leverage.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:00, hahalol123goaway

Which law would encourage more people to become homeowners but not encourage risky loans that could end in foreclosure? options: offering first time homebuyers tax-free accounts to save for down payments requiring all mortgages to be more affordable, interest-only loans outlawing home inspections and appraisals by mortgage companies limiting rent increases to less than 2% a year

Answers: 2

continue

Business, 22.06.2019 07:30, mv603177

Most states have licensing registration requirements for child care centers and family daycare homes. these usually include minimum standard for operation. which of the following would you most likely find required in a statement of state licensing standards for child care centers?

Answers: 2

continue

Business, 22.06.2019 10:20, jjimenez0276

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.

Answers: 2

continue

Business, 22.06.2019 16:20, valdezavery1373

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. the production order quantity for this problem is approximately:

Answers: 1

continue

Do you know the correct answer?

Which of the following statements is not true?
a. operating leverage refers to the extent to...