The income statement for Book Corp. is as follows:

Sales	$10,000
(Variable Expenses)	(3,000)
Contribution Margin	7,000
(Fixed Expenses)	(2,000)
Net Income	5,000

What is Book Corp.'s degree of operating leverage?

• A.

  5

• B.

  2

• C.

  0.71

• D.

  1.4