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What is the operating leverage effect and what causes it? What are the potential benefits and negative consequences of high operating leverage?
The phrase operating leverage effect is the phenomenon whereby a small change in sales triggers a comparatively large change in operating income. It is origin by the existence of fixed operating costs. The potential advantages are that if sales are rising operating income will increase more quickly. The negative consequences are that falling sales will cause operating income to fall more rapidly, involving negative values.
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how to calculate the net present value when there is company tax rate and rate of return assume that lease is for 2 years payable at the begining of the yr, at the end of two yrs t
applicability of an operating cycle in vegetable growing in uganda
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