A project has the following estimated data: price = $59 per unit; variable costs = $31.27 per unit; fixed costs = $5,200; required return = 12 percent; initial investment = $8,000; life = three years. Ignore the effect of taxes.

What is the degree of operating leverage at the financial break-even level of output?

Multiple choice: 2.1327 or 1.8866 or 2.5612 or 1.3945

Only the correct answer will be awarded the points.