The Smith Bakery sells a variety of gourmet breads, cakes, and pastries. Althouth they are more expensive than those available in the supermarkets, they have a loyal customer base that is willing to pay a premium price. On the average, Smith Bakery has a monthly revenue of $300,000 and earns a profit of $32,000. Their contribution margin ratio is 20%. What is the operating leverage for Smith Bakery? Round off your answer to four digits.

A.

0.1045

B.

0.0933

C.

0.8955

D.

0.8933

E.

0.1067