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Operating leverage is best described as Select on...

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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#3335 | Written in 18-Jul-2015

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