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The following information relates to MSF Corporation: Sales revenue = $500,000 (10,000 units @ $50/unit) Variable costs of operations = $200,000 (10,000 units @ $20/unit)

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The following information relates to MSF Corporation: Sales revenue = $500,000 (10,000 units @ $50/unit) Variable costs of operations = $200,000 (10,000 units @ $20/unit) Contribution margin = $300,000 Fixed costs of operation = $200,000 Operating income (EBIT) = $100,000 Interest expense = $50,000 Earnings before taxes (EBT) = $50,000 What is MSF Corporation's degree of operating leverage (DOL)? Select one: A. 1.0 B. 2.0 C. 3.0 D. 4.0

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