Steele Insulators is analyzing a new type of insulation for interior walls. The initial fixed asset requirement is $1.3 million, which would be depreciated straight-line to zero over the 12-year life of the project. Projected fixed costs are $314,800 and the anticipated operating cash flow is $206,300. What is the degree of operating leverage for this project?

A.1.66

B.1.92

C.2.53

D.2.27

E.3.49