When you don’t make a decision, you are making the choice to take no action. As a result, you must accept whatever happens or whatever others choose for you. You are also giving up control over your own life.
Answer:
To compute the income for each company and their respective degrees of operating leverage, we can use the following formulas:
Income (also known as operating income or profit) can be calculated as:
Income = (Sales - Variable Costs) - Fixed Costs
Degree of Operating Leverage (DOL) measures the sensitivity of a company's operating income to changes in sales and can be calculated as:
DOL = (Contribution Margin) / (Income)
Where Contribution Margin = (Sales - Variable Costs)
Let's calculate these for both Apple and the other company:
For Apple:
Sales = $260,174 million
Variable Costs = $122,034 million
Fixed Costs = $82,884 million
Income for Apple:
Income = ($260,174 million - $122,034 million) - $82,884 million
Income = $138,140 million - $82,884 million
Income = $55,256 million
Degree of Operating Leverage (DOL) for Apple:
Contribution Margin = $260,174 million - $122,034 million = $138,140 million
DOL = $138,140 million / $55,256 million ≈ 2.50
For the other company (referred to as Company S in the following calculations):
Sales = $161,857 million
Variable Costs = $86,302 million
Fixed Costs = $41,212 million
Income for Company S:
Income = ($161,857 million - $86,302 million) - $41,212 million
Income = $75,555 million - $41,212 million
Income = $34,343 million
Degree of Operating Leverage (DOL) for Company S:
Contribution Margin = $161,857 million - $86,302 million = $75,555 million
DOL = $75,555 million / $34,343 million ≈ 2.20
Now, to determine which company would experience the larger decline in income if unit sales decline:
The degree of operating leverage (DOL) provides an indication of how sensitive a company's income is to changes in sales. A higher DOL indicates that a company's income is more sensitive to changes in sales.
In this case, Apple has a higher DOL (approximately 2.50) compared to Company S (approximately 2.20). Therefore, if unit sales decline for both companies, Apple would experience a larger decline in income due to its higher operating leverage.
b. Decision support
c. Discovery
d. Knowledge management E. Online analytical processing
1. Strong Interest Inventory
2. Kuder Occupational Interest Survey
3. Self-Directed Search
4. Campbell Interest and Skill Survey
Pairs
1. rates people on seven orientation scales
2. measures career and leisure interests, organizing them into four main areas
3. classifies people according to six different types to help match interests with a career choice
4. measures personal work interests in ten broad areas
Answer: writes people on seven orientation scales: Campbell interest and skill survey
Measures career and leisure interests, organizing them into four main areas: strong interest inventory
Classifies people according to six different types to help match interest with a career choice: self-directed search
Measures personal work interest in 10 broad areas: Kuder occupational interest survey
Explanation: confirmed correct answers in taking stock of your values, interest, personality, and skills mastery test on Edmentum