Hope Company sells a product with a unit sales of P50 and a unit variable cost of P30. It needs to sell 40,000 units to breakeven. It expects to sell 90,000 units in the coming period from a previous of 75,000 units.

Hope's degree of operating leverage is

A. 1.875

B. 2.143

C. 1.800

D. 1.250

The percentage change in EBIT in the coming period as compared to the last period is

A. 42.86%

B. 37.50%

C. 36.00%

D. 25.00%