Business
Business, 11.07.2019 07:50, hihihi129473838

What is meant by the term operating leverage?

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Business, 21.06.2019 17:10, DroctorWellsfan
All else being equal, which is true about a firm with high operating leverage relative to a firm with low operating leverage? select one: a. a higher percentage of the high operating leverage firm's costs are fixed. b. the high operating leverage firm is exposed to less risk. c. the debt payments limit the high operating leverage firm's opportunities to turn a big profit. d. the high operating leverage firm has more debt.
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Business, 12.07.2019 05:10, onewaydemon
All else being equal, which is true about a firm with high operating leverage relative to a firm with low operating leverage? select one: a. a higher percentage of the high operating leverage firm's costs are fixed. b. the high operating leverage firm is exposed to less risk. c. the debt payments limit the high operating leverage firm's opportunities to turn a big profit. d. the high operating leverage firm has more debt.
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Business, 31.07.2019 20:30, akheel4818
Sam’s shingle corporation is considering the purchase of a new automated shingle-cutting machine. the new machine will reduce variable labor costs but will increase depreciation expense. contribution margin is expected to increase from $225,720 to $271,700. net income is expected to be the same at $41,800. compute the degree of operating leverage before and after the purchase of the new equipment. (round answers to 1 decimal place, e.g. 1.5.) degree of operating leverage (old) degree of operating leverage (new)
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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.
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