Calculating Operating Leverage

question 56

Multiple Choice

Calculating operating leverage. SunBucks Tea Supplies had EBITDA of $3,000 and EBIT of $2,750, with fixed cash expenses of $600 last year. What was SunBucks degree of accounting operating leverage?

• A) 1.20
• B) 1.25
• C) 1.28
• D) 1.31

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Definitions:

Bypassing

A communication barrier where the sender and the receiver miss each other's meaning due to differences in perception, culture, or language.

Speech With Humor

A speech delivery style that incorporates humor to engage the audience and enhance the message's effectiveness.

Sexual Harassment

Unwanted or inappropriate sexual remarks or physical advances in a workplace or other professional or social situations.

Harasser Intentions

The motives or objectives behind someone's actions to intimidate, bully, or coerce another person.