--%>
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 : What is the basic principle of

    What is the basic principle of comparative advantage?

    		•
  • 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 : Assertion to increase in the minimum

    Use the circular flow model to confirm this assertion for a $1 per hour increase in the minimum wage?

    		•
  • Q : Importance of Price Earnings Ratio

    Write down the importance of Price Earnings Ratio?

    		•
  • Q : Divide of the study of economics MOST

    The study of economics is MOST frequently divided within: (1) positive economics and negative economics. (2) macroeconomics and microeconomics. (3) subjective economics and objective economics. (4) supply side and demand side economics. (5) conservative economics and

    		•
  • Q : Business Strategies Cingular and Alltel

    Cingular and Alltel involve in aggressive and expensive advertising for cell-phones. A reason for this advertising may be: (1) attempts to increase market share. (2) predatorily drive other firms by the market. (3) to increase the use of cell phones.

    		•
  • Q : Describe redistributive effects of

    Describe redistributive effects of inflation?

    		•
  • Q : Resource payments correspond to

    Explain the foundation of economics where society’s material wants are Resource payments correspond to resource categories?

    		•
  • Q : Checkout problem A grocery store chain

    A grocery store chain is considering ways to improve the performance of the waiting lines at their checkout stands. A heavily trafficked checkout stand is monitored for 120 min. In that period, 60 customers have their groceries rung up, and depart from the store. The

    		•
  • Q : Affects the location of the production

    Explain how, if at all, each of the following affects the location of the production possibilities curve?

    		•