Calculating operating leverage. Coach K Sneakers, Inc., had EBIT of $1,850 last year with fixed costs equal to $500 (depreciation and amortization not included) and depreciation and amortization 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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