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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 operating leverage effect is the fact whereby a small change in sales activates a relatively large change in operating income. It is happened by the presence of fixed operating costs. The potential paybacks are that if sales are rising operating income will rise more quickly. The negative penalties are that falling sales will happen operating income to fall more quickly including negative values.
Secondary Market The secondary market is also referred to as the stock market where dealings in shares are taken up. It helps the shareholders to find buyers for trading. Thus,
1. The Gulf had sales of AED 20,000,000 and cost of goods sold of AED 10,250,000. Selling and administrative expenses represented 8 percent of sales. Depreciation was 5 percent o
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How does the theory of comparative advantage relate to the currency swap market? Answer: Name recognition is very important in the international bond market. With no it, even a
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