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Calculating Operating Leverage

Question 41

Multiple Choice

Calculating operating leverage. Coach K Sneakers Ltd had EBIT of $1,850 last year with fixed costs equal to $500 (depreciation and amortisation not included) and depreciation and amortisation equal to $150. What was Coach K's degree of accounting operating leverage?


A) 1.25
B) 1.35
C) 1.38
D) 1.40

Correct Answer:

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