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Degree of Operating Leverage
A measure of the firm's operating leverage, which is calculated as the contribution margin distributed by income before taxes. A rigid with a high degree of operating leverage will have a huge proportion of fixed costs in its total costs. This kind of rigid will experience a largest percentage increase in income from a given percentage increase in unit sales.
2.5. Västerås Corporation plans to buy a truck for $40,000 and depreciate it fully over 5 years using straight-line method of depreciation. However, it plans to use it for 8 years
Cash flow statement analysis Cash flow statement is a primary financial statement and shows cash generating ability of the organisation. Cash generated from operations can b
You have been hired as an economic advisor to the Southeastern Conference. As your first assignment they have asked you to identify three microeconomic and three macroeconomic issu
Zero base budgets: this is a new technique, which was first used by the US Department of Agriculture in 1961. Texas instruments, an MNC, have used it in the private sector. But,
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explain the concept of working capital.what are the factors which influence the working capital?
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