5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $16,000 and at that price, Thad estimates 300 units would be sold each year. The variable cost to produce and sell the cycles would be $11,200 per unit. The annual fixed cost would be $1,152,000.

a. What is the degree of operating leverage? (Round your answer to 2 decimal places.)