true or false The smaller the contribution margin ratio, the larger the amount of sales required to cover a given amount of fixed expenses  True  False   The margin of safety can be defined as the amount by which profit can decrease before losses are incurred by the company  True  False   A big increase in sales will result in a small increase in profit if there is a low degree of operating leverage in a company  True  False

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Q: The margin of safety can be defined as the amount by which sales can decrease before losses are…

A: Total sales of a company can be divided into Margin of safety sales and break even sales.

Q: The degree of operating leverage is equal to Group of answer choices only important…

A: Degree of operating leverage helps to identify change in operating income of a company in response…

Q: Break-even analysis is concerned with determining  a point at which the company can minimize total…

A: Breakeven analysis is very important done by management and cost accountants of the business. With…

Q: Which of the following statements about operating leverage is false?

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: [S1]Two companies with the same margin of safety in dollars will also have the same total…

A: Margin of safety is calculated as: = Profit / P/V ratio Further, operating leverage is the ratio for…

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A: Breakeven point in cost accounting is that point of revenue at which business is only recovering…

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Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Answer

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Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group…

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Q: profit graph which of the following is not true? A.Total revenue will always be $0 at zero sales…

A: Profit graph is a graph shows the profit and different level of sales in comparison to the cost…

Q: The break-even point is the sales level at which a company neither earns a profit nor incurs a loss…

A: The break even sales units are calculated as fixed cost divided by contribution margin per unit.

Q: Margin of Safety (MOS) in dollars indicates how much sales must decrease before the company will be…

A: Margin of safety is the excess of actual revenue over its break even revenue.

Q: Is my explanation correct? When the shit in sales toward the lower contribution margin.  In the…

A: Dear student your explanation is correct. In the sales mix, if the shift in sales to a product that…

Q: Resilence in the case of a corporate means: O Increasing efficiency of production by re-structuring…

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Q: Break-even analysis is concerned with determining a point at which the company can minimize total…

A: Break-even point is the point reached by the company where the revenues and costs of the firm are in…

Q: Help question 28

A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…

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Q: A high operating margin implies that ______________ . The company is in a better position to…

A: Operating margin means proportion of operating income over sales

Q: The margin of safety is the amount that sales can drop before the company incurs a loss True False

A: Margin of safety = Actual sales - Break-even sales

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A: Degree of Operating Leverage is a relation of contribution margin to the net income.  Contribution…

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A: Introduction:- Discussion of the effect on contribution margin ratio (CMR) and BEP of increasing…

Q: operating leverage factor t

A: Operating leverage factor = (Sales - Variable costs)/(Sales - Variable costs) - Fixed costs

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Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Operating Leverage = %change in EBIT / % change in sales

Q: A company's break-even point will  not be changed by:

A: Break-even point i Break-even point is a level of activity where no profit is gained and no loss…

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Q: Which of the following statements about operating leverage is false? O a. All of the given answers…

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Q: Which of the following statements about operating leverage is false? O a. Keeping all factors…

A: Operating leverage: It is a cost account accounting method or technique used by the firm to measure…

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