Using the company’s income statement presented, its degree of operating leverage is closest to:
Income Statement | $ millions |
Revenues | 9.8 |
Variable Operating Costs | 7.2 |
Fixed Operating Costs | 1.5 |
Operating Income | 1.1 |
Interest | 0.6 |
Taxable Income | 0.5 |
Tax | 0.2 |
Net Income | 0.3 |
C is correct.