Use the below information to answer the following question.

Sales (1,000 units) $ 200,000

Variable costs 110,000

Contribution margin 90,000

Fixed manufacturing costs 40,000

Operating income 50,000

Interest 10,000

Earnings before taxes 40,000

Taxes (30%) 12,000

Net income $ 28,000

Shares Outstanding 1,000

Refer to the table. The degree of operating leverage (DOL) is _____. Multiple Choice

1.62x

1.80x

3.50x

1.40x