6- (2 points) A project has projected sales of 25,600 units with a selling price of $4.95 each. Annual fixed costs are $31,000 with variable costs of $2.18 per unit. The project has a three-year life and requires an initial investment of $90,000 for equipment. The equipment will be depreciated straight-line to zero over three years. The tax rate is 34%. What is the projects degree of operating leverage at the given level of output?

A) 1.53

B) 1.64

C) 1.76

D) 1.85

E) 1.93