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Author Question: Which of the following measures would not help managers manage their degree of operating leverage? (Read 28 times)

yulisa3298

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Question 1

Mercantile Corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000. Mercantile's degree of operating leverage is
◦ 1.22.
◦ 1.20.
◦ 6.00.
◦ 1.47.

Question 2

Which of the following measures would not help managers manage their degree of operating leverage?
◦ Convert a welder who is paid by the hour to a welding machine.
◦ Change the unit sales price.
◦ Put all sales staff on salary instead of paying a sales commission.
◦ Convert some indirect material to direct material.


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Marked as best answer by yulisa3298 on Feb 5, 2023

saly

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yulisa3298

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


AngeliqueG

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Reply 3 on: Yesterday
Excellent

 

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