User Account

All Pages

What does a business''s contribution margin represent

Assignment Help Business Management
Reference no: EM131774848

Companies often use leverage to augment profits.  Based on what you learned this week, please explain the following in detail:

  • With regards to Operating Leverage, please explain why a company with HIGH Operating Leverage faces greater financial risk in a declining sales period compared to a company with LOW Operating Leverage.  (HINT: The key here is the relation between fixed costs and variable costs.)
  • What does a business's Contribution Margin represent?  What does the Contribution Margin have to do with Operating Leverage?

Reference no: EM131774848

Questions Cloud

How much will a bank be willing to loan at an interest rate : A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city.
Determining the costs per unit : Grouper Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:
Prepare journal entries for the preceding transactions : 09/17 Sold garden equipment that cost $800 for $1,100; collected $400 cash; billed customers for the balance. Prepare journal entries for preceding transactions
What do we mean by cost behavior : What do we mean by cost behavior? What is the difference between variable, fixed, and mixed costs? Give an example of each.
What does a business''s contribution margin represent : What does a business's Contribution Margin represent? What does the Contribution Margin have to do with Operating Leverage?
Review problem related to the cars : Compare two cars A and B. The initial cost of Car A is $500 more than Car B. However Car A consumes 0.01 less gallons/mile compared to B.
Calculate the cost per equivalent unit : For each cost category, summerize total Assembly Department costs for October 2009 and calculate the cost per equivalent unit
Cvp analysis techniques : Separately, can anyone look up and summarize what the assumptions are when using CVP analysis techniques?
Applying costs-weighted-average method : Materials are introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred.

Reviews

Write a Review

Business Management Questions & Answers

  Treated differently in negotiations

Provide at least three situations where you feel women are treated differently in negotiations. You might want to use personal situation involving you or a significant other.

  Illustrate what is the current share price for the stock

Investors require a 16 percent return on the stock for the first three years a 14 percent return for the next three years and then an 11 percent return thereafter. Illustrate what is the current share price for the stock?

  Gallium arsenide (gaas) has the zinc blende structure

Gallium arsenide (GaAs) has the zinc blende structure. The gallium atoms are in FCC packing and the arsenic atoms occupy half the tetrahedral sites. Calculate the density of Gallium arsenide (GaAs) using the following data. Covalent Radius Ga 1.26 Å..

  Complexities in leadership

At your hospital, the Committee on Medical Ethics is a medical staff committee. It answers to the Medical Executive Committee and the medical staff president.

  Traditional waterfall software development life cycle

As part of Steel Wheels' project plan preparation, would you choose between a traditional Waterfall Software Development Life Cycle (SDLC)

  Pm documentsshow some of the important customer and

pm documentsshow some of the important customer and organizational documents that a pm should be concerned with during

  What recommendation do you have for alikay naturals

What recommendation(s) do you have for Alikay Naturals to improve or replace Moisturizing Black Soap Shampoo? Write 2-5 sentences that support your recommendation(s).

  Prepare an outline for research proposal

Creat an annotated outline for the research proposal due in Week 8. Your outline should reflect the topic you selected (approved by your instructor) and cover.

  What are the parts of a business model canvas

What are the parts of a Business Model Canvas? How can the entire canvas assist an entrepreneur?

  Role of program managershould a program manager have a

role of program managershould a program manager have a specific role play in the systems development effort? what

  How can organizational change managed to prevent its failure

How can organizational change be managed to prevent its failure? Response the problem first. Then answer why, mainly the homework should be answering why.

  Global mgmtresearch information about dellanalysis of

global mgmtresearch information about dell.analysis of strategic factors. since you are aware that your analysis of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd