Answer:
c. 1 + FC/OCF
Explanation:
Note: The organized question is attached
Degree of Operating Leverage measure the relationship between fixed cost and variable cost.
The other formula of Degree of Operating Leverage = (Sales - Variable cost) / (Sales - Variable cost - Fixed cost).
It can also be written as Degree of operating leverage = Contribution margin / Operating profit.
Now, If we have to use operating cash flow approach, the third formula is the correct option which is [1+Fixed Cost/Operating cash flow].
