The ratio of a company's fixed costs relative to its overall costs is known as operating leverage. It is used to calculate a company's breakeven point as well as the expected profit levels on individual sales.
Companies with a high ratio of fixed operating costs to variable operating costs have the most operating leverage. This type of business operates with more fixed assets. On the other hand, operating leverage is lowest in businesses when the ratio of fixed to variable operating costs is low.
High operating leverage can have many advantages. If they don't have to raise costs to generate more sales, businesses with high operating leverage can profit more from each extra sale. When company picks up, fixed assets like property, plant, and equipment (PP&E) and current employees may accomplish much more without incurring extra costs. Earnings increase as profit margins widen.
Therefore, the given statement is true.
Learn more about Operating Leverage here: https://brainly.com/question/13982347
#SPJ4
g what is the expected return of the four-stock portfolio described below? (chapter 6) common stock expected return (er) weight a 6.9% 10% b 8.1% 40% c 2,9% 25% d 3.8% 25% portfolio's expected return
3.8% is the expected return of the four-stock portfolio, 25% common stock expected return (er). Given previous rates of return and the likelihood of specific returns under various scenarios.
The expected rate of return, also known as expected return, is the profit or loss an investor anticipates from an investment. The formula for expected returns predicts possible future returns. Over the long term, investors who keep their money invested in the S&P 500 have been able to benefit from an annualised stock market return of about 10%. This does not imply that you should anticipate a 10% return each year. Stocks rise in certain years while falling in others.
To learn more about expected returns, click here.
https://brainly.com/question/17152687
#SPJ4
if abc and xyz operate to jointly maximize profits, then what quantity is sold? a. 35 b. 30 c. 25 d. 40
If ABC and XYZ operate to jointly maximize profit, then the quantity of sold items would be 25.
Hence, the correct option is C
When members of a cartel, duopoly, oligopoly, or other similar market structure make pricing and output decisions that aim to maximize the profits of the group as a whole, this is referred to as joint profit maximization. In essence, the member companies want to exercise monopoly power.The total of A and B's respective RSTP and ABCP constitutes the joint maximum profit. It will be combined into a fund and dispersed by the cartel board in accordance with the arrangement made by the two companies at the time of the cartel's establishment.To know more about Profits here
https://brainly.com/question/19493835
#SPJ4
president obama and his administration refused to prosecute wall street executives after the crash of 2008, ignoring abundant evidence of fraud, conflicts of interest, and insider trading. why? obama was mainly concerned with restoring stability to the financial system. obama had appointed many wall street insiders to high government positions, and relied for advice upon the same ivy league economists who advised the financial services industry. obama did not want to alienate wall street, which finances the campaigns of both republicans and democrats. all of the above.
B) Obama hired countless individuals from Wall Street to important government positions and counted on the same varsity economists who consulted the financial sector for advice.
What is the job of the economist?The Work of Accountants. The information is collected and analyzed by economists, who also look into patterns and assess financial troubles including resources, companies, and service.
Are economists paid well?Yes, most economics do earn a lot of money. Despite the number of jobs with varied salary levels, most economists earn at least $100,000 annually. Analysis is used to address a wide range of issues by economists who research the distribution and production of resources, assets, and commodities.
To know more about financial visit :-
https://brainly.com/question/29641948
#SPJ4
one restaurant you know of offers a "cash discount" and another charges a "credit card fee." even though you end up paying the same amount for your meals at both restaurants, you feel like the cash discount is a good deal and that the credit card fee is unjust. this is due to which decision making bias?
The correct option is (A) Framing Effects
One restaurant you know of offers a "cash discount" and another charges a "credit card fee." even though you end up paying the same amount for your meals at both restaurants, you feel like the cash discount is a good deal and that the credit card fee is unjust. this is due to Framing Effects.
What is the meaning of framing effect?
The framing effect is a cognitive bias in which the way information is presented affects the decisions the brain makes about the information. The framing effect is frequently utilized in marketing to sway consumers’ choices and purchases.
How does framing effect affect decision making?
The framing effect, which indicates that people make choices based on the potential value of losses and gains rather than the outcome, is the phenomenon wherein people are influenced by diverse semantic explanations of the same issue and have varying risk preferences.
Why framing a problem is important?
The goal of the problem-solving technique known as problem framing is to get everyone in the team to agree on a single course of action for a project by organizing the details of the problem in a comprehensible and cooperative manner. Therefore, use this play to take a step back and align on the issue you are trying to solve for when your team can’t agree on a solution.
To know more about framing effects:
https://brainly.com/question/29440385
#SPJ4
I understand thtat the question you are looking for is:
One restaurant you know of offers a “cash discount” and another charges a “credit card fee.” Even though you end up paying the same amount for your meals at both restaurants, you feel like the cash discount is a good deal and that the credit card fee is unjust. This is due to which decision making bias?
A. Framing Effects
B. Base Rate Bias
C. Misconceptions of chance
D. Misunderstanding Conjunctive Events