The sales and cost data for two companies in the transportation industry are as follows:

	X Company		Y Company
	Amount	Percent	Amount	Percent
Sales	$ 136,000	100.00	$ 136,000	100.00
Variable costs	81,600	60.00	40,800	30.00
Contribution margin	54,400	40.00	95,200	70.00
Fixed costs	36,400		72,450
Operating income (B)	$ 18,000		$ 22,750

X Company's degree of operating leverage (DOL) at the current sales volume level is calculated to be:

Multiple Choice

• 3.02

• 5.00

• 6.00

• 4.00

• 2.00