Calculating Operating Leverage

question 63

Multiple Choice

Calculating operating leverage. TurkeyJerkey Dried Meats, Inc., had a degree of accounting operating leverage equal to 1.714 during the most recent period. If the firm's EBITDA was $4,000 and depreciation and amortization was equal to $500, then what was TurkeyJerkey's fixed cash expenses during the same period?

• A) $1,499
• B) $1,999
• C) $5,499
• D) $5,999

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