The Following Income Statement Is Provided for Vargas, Inc

question 122

Multiple Choice

The following income statement is provided for Vargas, Inc. What is this company's magnitude of operating leverage?

• A) 3.07
• B) 0.33
• C) 3.00
• D) 1.67

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Definitions:

Schedule C

A financial document utilized by individual business owners to declare their business's earnings or deficits.

Deductible Expenditure

An expense that can be subtracted from gross income to reduce taxable income, often related to business or specified personal expenses.

Travel Expense Deduction

Tax deductions allowed for expenses incurred while traveling for business purposes.

Sightseeing

The activity of visiting places of interest or natural beauty, especially during travel or holidays.