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

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