--%>
Assignment Help - homework help

What does high or low operating leverage specify

What does high or low operating leverage specify?

E

Expert

Verified

Operating leverage specify about the company and its prospect profitability. It as well assists in assessing the level of risk that has been proposed to the investors. Throughout this investors can approximate the profitability in certain situations. High operating leverage specifies profits and it tells about the company's more money creating policies from each further sale if the raise cost does not rise to produce more sales while low operating leverage indicate the declining of profit margins and declining in earnings.

   Related Questions in Business Economics

  • Q : Who define Theory of Moral Sentiments

    The argument which slicing off one’s pinkie would be extra bothersome to which person than the loss of millions of his brethren was made within A Theory of Moral Sentiments (1755) through: (1) Adam Smith. (2) David Ricardo. (3) Theophrastus Phil

    		•
  • Q : Are quantities supplied-demanded equal

    In perfectly competitive market, the market demand curve is given by Qd = 10 − Pd, and the market supply curve is given by Qs = 1.5Ps. a) Prove that the market equilibrium price and

    		•
  • Q : Firms operating under Cournot

    Question: Suppose three identical firms are engaged in Cournot competition in quantities. They all have marginal costs equal to 40. Market demand is given by:

    Q : Describe the equation of a linear

    Describe the equation of a linear relationship?

    		•
  • Q : How can we evaluate cost of capital How

    How can we evaluate cost of capital?

    		•
  • Q : Determine relative price when two

    When the prices for doughnuts and croissants are $.50 and $1 correspondingly: (w) the opportunity cost for one doughnut is two croissants. (x) this is better to buy two doughnuts than one croissant. (y) one croissant will make Pierre twice as happy as one doughnut. (z

    		•
  • Q : The market system not only accepts

    Explain the statements: The market system not only accepts self-interest as a fact of human existence.

    		•
  • Q : Cornerstone of typical economic theory

    The cornerstone of typical economic theory derived through the work of Jeremy Bentham was the perception of (i) the wages fund. (ii) natural checks on population. (iii) increasing cost. (iv) utility. (v) surplus value.

    Q : Illustrate the complex cases when both

    Illustrate the complex cases when both supply and demand shift?

    		•
  • Q : Specialization in division of labor I

    I have a problem in economics on Specialization in division of labor. Please help me in the following question. Jennifer writing computer code whereas Melissa handles the business features of Econo-Software would be an illustration of specialization i

    		•