Calculating Operating Leverage

question 37

Multiple Choice

Calculating operating leverage. Swan's Bicycle Boats had a degree of accounting operating leverage equal to 1.50 during the most recent period. If the company's EBITDA was $5,000 and its fixed costs were equal to $1,750, then what was Swan's depreciation and amortisation expense during the same period?

• A) $500
• B) $1,000
• C) $1,500
• D) $2,833

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Definitions:

Norms

Shared standards of behavior that are considered acceptable within a group, community, or culture.

Values

Core beliefs or standards that guide and influence behavior and decision-making, reflecting what is important to an individual or organization.

Shared Behaviors

Actions or conducts that are common among members of a group, contributing to a collective culture or identity.

Gestures

Physical movements of the body, particularly hands and arms, which express ideas, feelings, or instructions, often accompanying speech.