Changes in sales cause changes in profits. Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage? Explain your answer.

Q: How are effective improvement of return on investment in Zara company

A: The acronym ROI stands for return on investment. It is defined as the return obtained from the…

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A: A high price-earning ratio implies more price has to be paid for acquiring the stocks of the firm…

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A: Hey, since there are multiple subpart questions posted, we will answer the first three subpart…

Q: Changes in Operating Leverage Explain why operating leverage decreases as a company increases sales…

A: Operating leverage is a measure of how sensitive a company's operating income is to changes in sales…

Q: 3. How does operating leverage impact the operating risk and profit levels of a company?

A: Operating leverage measures the percentage increase in operating income which is a result of change…

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Q: Why was the increase in FCI's operating income so much greater than the increase in its net sales?

A: Operating income: Operating income measures the organization's profitability (includes all incomes…

Q: operating

A: Operating leverage is a leverage which helps us to know the cost structure of a company & also…

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A: Answer: Retained earnings is the cumulative or collective profit hold by company in shareholders…

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A: Return on marketing expenditure, or ROMI, is an indicator utilized to evaluate the success of a…

Q: how to assess a company's success in using leverage to increase returns?

A: Leverage refers to the risk involved and the borrowed capital that is used to undertake a project…

Q: From a financial management perspective, when would it make sense to (a) invest in additional…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

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A: Answer: Usually, company’s operating profitability ratio’s measure how far management will strive to…

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A: Sustainable growth means Growth for the future customers such as petroleum industries advertise…

Q: What is the concept of operating leverage? Describe a scenario where a high degree of operating…

A: Solution- Operating leverage is the a degree to which a firm uses variable and fixed costs in…

Q: return on investment

A: First option is wrong because the return on investment will increase if the invested capital…

Q: How does the goal of the firm influence the sales maximization and profit maximization decision.

A: The goal of the Firm: Every firm has a goal of wealth maximization which is accomplished from the…

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A:

Q: Provide Answer with calculation

A: Detailed ExplanationLet's address each question: Q no 1: Firm Value and Dividend Policy: In a…

Q: Why do you believe businesses rely heavily on revenue recognition to inflate profits

A: Here is the Answer

Q: Why would a company choose to factor itsreceivables, given that it will get less money than…

A: Sales means delivery of goods and services by the seller. It can be for cash sales or sales made on…

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A: The shareholders of the company measn the people that purchase the shares of the company. There are…

Q: book value.”

A: Market value is the value that is determined by the forces that are external to the company such as…

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Q: Get Answer with Explanation

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Q: 1) In most cases, book value reasonably approximates the current market value. This will not be the…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: How is the return on investment in the Zara firm increased effectively?

A: IntroductionReturn on investment (ROI) is an acronym meaning return on investment. It is defined as…

Q: A firm with a below industry net profit margin can improve its return on total assets by:  a.…

A: Net profit margin:  Net profit margin evaluates how much net profit a firm makes per dollar of…