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