A manufacturer of cedar shingles has supplied the following data:
|
Bundles of cedar shakes produced and sold |
280,000 |
|
Sales revenue |
$2,072,000 |
|
Variable manufacturing expense |
$1,134,000 |
|
Fixed manufacturing expense |
$436,000 |
|
Variable selling and administrative expense |
$238,000 |
|
Fixed selling and administrative expense |
$164,000 |
|
Net operating income |
$100,000 |
The company”s degree of operating leverage is closest to:
A) 2.80
B) 7.00
C) 2.29
D) 20.72