Given the following information extracted from the income statement of Widget Company ( Widget Company has no depreciation or amortization expenses), Extract from Widget Companys income statement Sales:

Units sold 150,000

Price per unit $15

Variable cost per unit $8

Fixed factory operating costs $450,000

Total gross profit margin $600,000

Non-operating fixed costs $200,000

Fixed interest costs $100,000

Taxes $75,000

The degree of total leverage of Widget Company is closest to:

a. 2.80

b.3.50

c. 3.25

d. 4.00