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Explain why operating leverage decreases as a company increases sales and shifts away from the break even point?

"Explain why operating leverage decreases as a company increases sales and shifts away from the break-even point."


What happens to the break even point if fixed costs increase but variable cost and price remain the same?

the break even point goes up


What is the conclusion of poverty?

child labour out break of many fetal diseases increase in social crimes economic stabilization will be no more seen unequal distribution of income


Why inflation is unjust?

inflation deprive the consumer of their purchasing power.Inflation increase the inequalities in the society,it hurts the poor people and gives benefit to the upper class.It reduces savings and discourages in the economy.Inflation encourages the hoarding essential goods by traders,it stimulates speculative activities.Inflation disrupts the smooth functioning of price mechanism.An uncontrolled result in the break down of the monetary system of the country,if the speed or inflation is high the export decline due to higher production costs and imports increases...


Explain hot the marginal product of labor and the average product of labor change as the quantity of labor employed increases initially and eventually?

Initially, the MPL and APL fall since there can be no jump in the level of capital used by these workers, and thus output put worker is less than before. However, as time goes on, actual invesmtent exceeds break-even investment and the level of capital increases until the old equilibrium value of capital per worker is reached. At this point, after convergence or time, the MPL and APL are restored to their original values (ceteris paribus).

Related Questions

What causes the break even point to increase or decrease?

The break-even point increases when fixed costs increase or selling price decreases. It decreases when fixed costs decrease or selling price increases. Changes in variable costs or sales volume can also impact the break-even point.


What will happen to a company's break even point if the sales price and unit variable cost of its only product increases by the same dollar amount?

the break even increase


How does thyroxine increase metabolism in the body?

Thyroxine increases metabolism in the body by stimulating the production of enzymes that help break down nutrients for energy, which leads to an increase in the body's overall metabolic rate.


What happens to temperature as energy is added to a substance that is changing state?

The temperature remains constant during a change of state as the energy is used to break intermolecular bonds rather than increase molecular motion. Once the substance has completely changed state, the temperature will start to rise again as the added energy increases the molecular motion.


Does the solubility of potassium nitrate in water increase or decrease as the temperature rises?

The solubility of potassium nitrate in water increases as the temperature rises. This is because heating water increases the energy of its molecules, allowing them to break apart the solid potassium nitrate more effectively and dissolve it.


How does the solubility of a substance change with a rise in temperature?

With a rise of temperature, the solubility increases


What happens to solubility as the temperature changes?

Mostly, but not always, solubility increases with temperature. However in general it is impossible to say 'How', because this is very different for each solvent - solute combination and many other circumstances.


Why is pressure and temperature affects the sollubility?

Heat helps to break down molecules so the hotter the the solvent the the easier it is for the solute molecules to break down. Increase in pressure also increases solubility in terms of gasses.


How does the temp affect the solubility of most solids?

In general, the solubility of most solids increases with an increase in temperature. This is because higher temperatures provide more energy for the solvent molecules to break apart the solute molecules and form a solution. However, there are exceptions where the solubility may decrease with increasing temperature for certain compounds.


Is energy added during melting changes?

No, the temperature remains constant during melting as energy is used to break intermolecular bonds rather than increase the temperature.


What happens to the solubility of a solid in water as the temperature increases?

In general, the solubility of most solids in water increases as the temperature increases. This is because higher temperatures provide more energy for the solvent molecules to interact with and break down the solid particles, allowing more of the solid to dissolve in the water. However, there are exceptions where the solubility of certain solids may decrease with increasing temperature, depending on the specific substances involved.


How does strength of inter molecular forces affect evaporation point?

as inter molecular forces increase the evaporation point also increases as more heat is required to break the bonds