A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 380,000 $ 2,736,000 $ 1,349,000 $ 336,000 $ 399,000 372.000 $ 280,000 The company's degree of operating leverage is closest to: 9.77 3.53 1.36 2.47