Please given answer general accounting Resoneffect Inc. has a degree of pretax cash flowoperating leverage equal to 1.12. If the firm'sEBITDA was $2,000 last year while its depreciationand amortization expense was $150 in the sameyear, then what was the firm's degree of accountingoperating leverage?

Step 1: Define EBITDA expensesEarnings before interest, tax, depreciation and amortization (EBITDA)…

Answered: Resoneffect Inc. has a degree of pretax…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Resoneffect Inc. has a degree of pretax cash flow operating leverage equal to 1.12. If the firm's EBITDA was $2,000 last year while its depreciation and amortization expense was $150 in the same year, then what was the firm's degree of accounting operating leverage?