When you say that hi-fly's fixed costs are higher than the variable costs, shouldn't the weighing machine go down as its heavier (higher)? I assume you made it go higher to visually show us that fixes costs are higher. But that's wrong right?
Can you please change the scales. It doesn't make sense for fixed cost to go up. I am learning this in accounting and was looking for some clarification. Your video confused me a lot and I am sure I am not the only one.
No. Sales - Variable costs is not the same as Fixed cost. Sales - Variable Costs = Profit + Fixed costs. (you're missing the profit that sales includes)
Operating leverage depends on sales: "if the unit variable cost is constant, then as sales increase, operating leverage (as measured by fixed costs to total costs or variable costs) decreases." This seems to be a mistake, no? Wouldn't operating leverage increase as sales increase? en.wikipedia.org/wiki/Operating_leverage
Wow, you explain something in less than 3 min when my professor couldn't in 3 hrs
When you say that hi-fly's fixed costs are higher than the variable costs, shouldn't the weighing machine go down as its heavier (higher)?
I assume you made it go higher to visually show us that fixes costs are higher. But that's wrong right?
yup, i agree, it should have gone down. But it was just a visualization to show HIGHer amount.
nass4e This seriously confused me for a long time. I needed to know this for my accounting assignment.
Glad we got it clarified guys! :)
this made me confused during whole video
I replayed the video several times because I didn’t get this point, it should have gone down instead to show that it’s higher
Excellent video, thanks! I could quickly understand while in class at university I hadn't a single clue.
Great short learning video, just the back ground music is too loud.
AWESOME... ! i like the idea of teaching in 2 minutes.. thank u investopedia!
Great explanation in a simple way, been struggling with this definition for my corporate finance essay.
very simple yet powerful explanation!!!
Can you please change the scales. It doesn't make sense for fixed cost to go up. I am learning this in accounting and was looking for some clarification. Your video confused me a lot and I am sure I am not the only one.
Lizard Queen totally agree!! I was so confused
I WAS LOOKING FOR THIS COMMENT🤣🤣🤣🤣🤣🤣
After several years, now I truly understand what this means.
Great video. Thanks a lot makers.
Great video explaining the topic, but please leave out the music in the background lol very distracting.
Good video!! But the music is really annoying.
Super Like
Brilliant
what if you divide Fixed cost by Profit? It is sort the same, isn't it?
No. Sales - Variable costs is not the same as Fixed cost. Sales - Variable Costs = Profit + Fixed costs. (you're missing the profit that sales includes)
Yeah, it's not the same mathematically, but Profit/FC shows how much profit is generated from the use of 1 unit of FC, right?
Just a magic 🎉
I love the video, but the song is not helping me keep up lmao
WTF with the music
PLS AVOID BACKGROUND MUSIC
You explained everything better than my lecturer
my ears... whats with the music
Ty
Maybe you can make the video slower
If FE>VE, then explain that fucking scale
very helpful
whats up with this silly music
Operating leverage depends on sales: "if the unit variable cost is constant, then as sales increase, operating leverage (as measured by fixed costs to total costs or variable costs) decreases."
This seems to be a mistake, no? Wouldn't operating leverage increase as sales increase?
en.wikipedia.org/wiki/Operating_leverage