Perskey Corporation generated the following income statement for the most recent fiscal year:

Sales revenues $150,000

Variable cost of sales (112,500)

Gross profit 37,500

Fixed operating costs (24,000)

Net operating income (EBIT) 13,500

Interest (10,000)

Earnings before taxes 3,500

Taxes (40%) (1,400)

Net income 2,100

The degree of total leverage for Perskey is closest to:

	a.	42.86
	b.	10.71
	c.	17.86