9)Which of the following statements is not true?? -?Companies that hav


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9)Which of the following statements is not true??

-?Companies that have higher fixed costs relative to variable costs have higher operating leverage. -?Operating leverage refers to the extent to which a company's net income reacts to a given

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9)Which of the following statements is not true??

-?Companies that have higher fixed costs relative to variable costs have higher operating leverage. -?Operating leverage refers to the extent to which a company's net income reacts to a given change in sales. -?When a company's sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly. -?When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.11) Miller Manufacturing's degree of operating leverage is 1.5. Warren Corporation's degree of operating leverage is 3. Warren's earnings would go up (or down) by ________ as much as Miller's with an equal increase (or decrease) in sales.? -?2 times -?4.5 times -?1.5 times -?1/2 times13) Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?? -?65% -?35% -?25% -?75%15) The Mac Company has four plants nationwide that cost $350 million. The current fair value of the plants is $300 million. The plants will be reported as assets at:? -?$600 million. -?$300 million. -?$700 million. -?$350 million.17) Based on the following data, what is the amount of working capital? ? Accounts payable.................................................................$64,000 Accounts receivable..............................................................114,000 Cash.................................................................................. 70,000 Intangible assets..................................................................100,000 Inventory............................................................................ 138,000 Long-term investments...........................................................160,000 Long-term liabilities.................................... ...........................200,000 Short-term investments............................................................80,000 Notes payable (short-term)........................................................56,000 Property, plant, and equipment...............................................1,340,000 Prepaid insurance......................................................................2,000 -?$326,000 -?$332,000 -?$284,000 -?$370,000

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