Below is an income statement for Howell Company: Sales $600,000 Variable costs (150,000) Contribution margin $450,000 Fixed costs (300,000) Profit before taxes $150,000 Refer to Howell Company. Assuming that the fixed costs are expected to remain at $300,000 for the coming year and the sales price per unit and variable costs per unit are also expected to remain constant, how much profit before taxes will be produced if the company anticipates sales for the coming year rising to 125 percent of the current year's level? Select one: a. $112,500 O b. $262,500 O C. $187,500 d. $300,000 The following information relates to financial projections of McKay Company: Projected sales 60,000 units Projected variable costs $2.00 per unit Projected fixed costs $50,000 per year Projected unit sales price $7.00 Refer to McKay Company. If McKay Company achieves its projections, what will be its degree of operating leverage? Select one: O a. 6.00 b. 1.20 c. 2.40 d. 1.68