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