Calculating Operating Leverage

question 67

Multiple Choice

Calculating operating leverage. Marvellous Company has a degree of cash flow operating leverage equal to 1.25. If the company's EBITDA was $1,000 last year while its depreciation and amortisation expense was $50 in the same year, then what was the company's degree of accounting operating leverage?

• A) 1.26
• B) 1.30
• C) 1.32
• D) 1.35

Identify different types of operational expenses and their importance in company operations.

Understand the rights and responsibilities of buyers and sellers under different shipping terms.

Recognize the role and treatment of returned merchandise in sales and accounting systems.

Understand the components and presentation of proprietary fund financial statements.