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Author Question: In a company with low operating leverage, ________. (Read 88 times)

codyclark

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on: Mar 6, 2021

Question 1

If the contribution margin ratio is 0.60, targeted operating income is $50,000, and fixed costs are $75,000, then sales volume in dollars is ________. (Round the final answer to the nearest dollar.)
◦ $312,500
◦ $208,333
◦ $125,000
◦ $83,333

Question 2

In a company with low operating leverage, ________.
◦ fixed costs are more than the contribution margin
◦ contribution margin and operating income are inversely related
◦ there is a higher possibility of net loss than a higher-leveraged firm
◦ less risk is assumed than in a highly leveraged firm
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by codyclark on Mar 6, 2021

matt95

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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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codyclark

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

sultana.d

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

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