What is the maximum annual operating expense the organization can incur in order to achieve its targeted EBITDA? (EBITDA target = $140M; Revenue = $500M)

The correct answer is D. $360 million. EBITDA = Revenue - Operating Expenses To achieve $140M EBITDA on $500M revenue, expenses must not exceed $360M. Calculation: $500M revenue - $360M expenses = $140M EBITDA SPHR-level financial literacy includes calculating financial health metrics that support operational and…

Business Management & Strategy

Question

Options

A$152 million
B$180 million
C$240 million
D$360 million

How the community answered

(66 responses)

A
11% (7)
B
5% (3)
C
2% (1)
D
83% (55)

Explanation

EBITDA = Revenue - Operating Expenses To achieve $140M EBITDA on $500M revenue, expenses must not exceed $360M. Calculation: $500M revenue - $360M expenses = $140M EBITDA SPHR-level financial literacy includes calculating financial health metrics that support operational and strategic HR planning.

Topics

#EBITDA#operating expenses#financial analysis#budget targets

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