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You have come up with the following income statement for your company and want to answer the following question. Sales $45,750 Variable Costs 22,800 Fixed

You have come up with the following income statement for your company and want to answer the following question.

Sales $45,750

Variable Costs 22,800

Fixed Costs 9,200

EBIT 13,750

Interest 1,350

EBT 12,400

Taxes 4,200

EAT 8,200

What is the degree of operating leverage (DOL)?

1.16

1.49

1.67

1.82

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