By Multiplying the Operating Leverage Factor by the Anticipated Percentage

question 22

Multiple Choice

By multiplying the operating leverage factor by the anticipated percentage change in volume,one can find the anticipated change:

• A)in sales revenue.
• B)in contribution margin.
• C)in fixed expenses.
• D)in operating income.

Understand the balance of trade and how international transactions are accounted for.

Recognize hedging strategies for managing currency risk in international transactions.

Describe the role of government intervention in foreign exchange markets under floating exchange rate systems.

Understand the concept and implication of Eurodollars and Eurobonds in international finance.