LMN Ltd sells 2.0m units of its product Y per year at a selling price of R200 per unit. Variable costs are R125 per unit. Fixed costs are R100m per year. What is the degree of operating leverage (DOL) at the current level of sales?

a.

DOL = 3.50

b.

DOL = 2.00

c.

DOL = 1.50

d.

DOL = 2.25

e.

DOL = 3.00