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A firm can reduce is operating leverage by substituting

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Operating leverage is best described as;Select one;A. a measure of the extent to which an organization's operations are fixed.;B. a measure of the extent to which an organization's costs financed by equity.;C. a measure of the extent to which an organization's contribution margin is affected by sales mix of products.;D. a measure of the extent to which an organization's operations are financed by debt.;In a cost-volume-profit graph;Select one;A. an increase in unit variable costs would decrease the slope of the total costs line.;B. the total revenues line crosses the horizontal axis at the break-even point.;C. an increase in the unit selling price would shift the break-even sales point to the left.;D. an increase in the unit selling price would shift the break-even sales point to the right.;Profitability analysis involves examining the relationships among all of the following except;Select one;A. products.;B. costs.;C. profits.;D. revenues.;A firm can reduce is operating leverage by substituting;Select one;A. debt for equity.;B. equity for debt.;C. direct labor for robotic equipment.;D. direct materials for direct labor.;A cost-volume-profit graph;Select one;A. plots contribution margin on the X-axis and volume on the Y-axis.;B. plots contribution margin on the Y-axis and volume on the X-axis.;C. plots both revenue and total cost on the X-axis.;D. plots both revenue and total cost on the Y-axis.;Operating leverage is best described as;Select one;A. a measure of the extent to which an organization's costs are fixed.;B. a measure of the extent to which an organization's contribution margin is sensitive to levels of debt.;C. a measure of the extent to which an organization's operations are financed by debt.;D. a measure of the extent to which an organization's profits contribute to reductions in debt.

 

Paper#24561 | Written in 18-Jul-2015

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