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Author Question: If a company would like to increase its degree of operating leverage it should ________. (Read 67 times)

yoooooman

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on: Mar 6, 2021

Question 1

If a company has a degree of operating leverage of 5 and sales increase by 30%, then ________.
◦ total fixed costs will increase by 150%
◦ total costs will increase by 150%
◦ profit will increase by 120%
◦ profit will increase by 150%

Question 2

If a company would like to increase its degree of operating leverage it should ________.
◦ increase its sales relative to its fixed costs
◦ increase its sales relative to its variable costs
◦ increase its variable costs relative to its fixed costs
◦ increase its fixed costs relative to its variable costs
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by yoooooman on Mar 6, 2021

Dunkey

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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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yoooooman

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

strudel15

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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