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Operating leverage is best described as

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Question;Operating leverage is best described asSelect 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 graphSelect 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 exceptSelect one:A. products.B. costs.C. profits.D. revenues.A firm can reduce is operating leverage by substitutingSelect 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 graphSelect 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 asSelect 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#52103 | Written in 18-Jul-2015

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