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McKay Company 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

McKay Company 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:

a. 6.00

b. 1.20

c. 2.40

d. 1.68

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