How can we compute operating leverage
How can we compute operating leverage?
Expert
Operating leverage is highest in companies that got fixed operating cost for variable operating cost. It tells investor about the company’s situation and the risk profile of the company. It is evaluated when a company has fixed costs that are apart from the sales volume. When company has fixed cost then the percentage change in profits due to changes in sales volume is larger than the percentage change in sales. The calculation of this is named as degree of operating leverage (or DOL) that gives the extent to that operating profits change as sales volume changes. DOL (or Degree of operating leverage) = percentage change in income / percentage change in sale.
Explain this statement: “If resources were unlimited and freely available, there would be no subject called economics.”
What are economic resources? What are the major functions of the entrepreneur?
Briefly describe the term Benefit Cost Ratio (or B/C Ratio) or Profitability Index (or PI)?
Describe briefly Operating income approach?
Explain how government might manipulate its expenditures and tax revenues to reduce rate of inflation?
Explain by giving example of an absolute advantage in production of two products?
Compare the costing and pricing process of heterodox pricing process to the procedures utilized in neoclassical microeconomics to set prices. In what ways are heterodox prices altered from neoclassical prices?
Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment? Answer:
Question Discuss what "economic development" means in the context of this game? (Hint: How do you win, and what do you have at the end of the game that you did not have at the beginning of the game?)
In heterodox economics, what implications does technical change and vintage technology contain for the cost structure of the business enterprise?
18,76,764
1927814 Asked
3,689
Active Tutors
1416453
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!