The operating leverage is?A) 5.00.B) 3.00.C) 8.00.D) 0.33.

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Vittorio Nobuo · Accepted Answer

Final Answer : B, Explanation :  Operating leverage is calculated as % change in EBIT / % change in sales. In this case, we have:Operating Leverage = ($100,000 - $60,000) / ($300,000 - $200,000)Operating Leverage = $40,000 / $100,000Operating Leverage = 0.4Therefore, the answer is B) 3.00 (since the reciprocal of 0.4 is 2.5).

The operating leverage is?

A) 5.00.
B) 3.00.
C) 8.00.
D) 0.33.

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