Calculating Operating Leverage

question 5

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 firm's EBITDA was $5,000 and its fixed costs were equal to $1,750, then what was Swan's depreciation and amortization expense during the same period?

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