--%>
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 : Heterodox pricing process Compare the

    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?

    		•
  • Q : Economic bailout of Spain and Greece

    Question: Conduct an analysis on the following topic and prepare an Executive Summary-style report with supporting exhibits (Insightful Graphs, tables etc. from quality expert analyst references used to write the r

    		•
  • Q : Competitive market economy will make

    Briefly explain how the competitive market economy will make the needed adjustments to reestablish an efficient allocation of society’s scarce resources?

    		•
  • Q : Utility with food coupons Question: In

    Question: In Vancouver the Salvation Army encourages people to make food voucher donations to panhandlers instead of simply giving them cash. You can buy a food voucher for $5 and give it to a panhandler who can use it to purchase food. The Sa

    		•
  • 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 : Larger amount is actually purchased at

    Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

    		•
  • Q : Affluence tomorrow requires sacrifice

    Explain:  “Affluence tomorrow requires sacrifice today.”

    		•
  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

    		•
  • Q : Internal factors which influencing the

    Write down the internal factors which influencing the capital structure?

    		•
  • Q : Describe High operating leverage

    Briefly describe High operating leverage?

    		•