BASIC INFORMATION: A three-year project will cost $60,000 to construct. This will be depreciated straight-line to zero over the three-year life. The price per unit sold is $20 and the variable cost per unit sold is $10. Fixed costs are $30,000 per year. Using the BASIC INFORMATION, compute the DOL if the quantity sold is 7,000. (Ignore taxes.)

A.0.75

B.1.36

C.1.49

D.1.75

E.2.36