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Author Question: When a greater proportion of costs are fixed costs, then ________. (Read 13 times)

chads108

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on: Mar 6, 2021

Question 1

Sales of Blistre Autos are 380,000, variable cost is 230,000, fixed cost is 90,000 tax rate is 40%. Calculate the operating leverage of the company.
◦ 1.50 times
◦ 4.17 times
◦ 1.53 times
◦ 2.50 times

Question 2

When a greater proportion of costs are fixed costs, then ________.
◦ a small increase in sales results in a small decrease in operating income
◦ when demand is low the risk of loss is high
◦ a decrease in sales reduces the total fixed cost per unit
◦ a decrease in sales reduces the cost per unit
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by chads108 on Mar 6, 2021

vickybb89

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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chads108

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

LVPMS

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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