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Question(s) / Instruction(s):

A company that makes organic fertilizer has supplied the following data:

Bags produced and sold                                                680,000

Sales revenue                                                                   $4,352,000

Variable manufacturing expense                              $1,972,000

Fixed manufacturing expense                                    $730,000

Variable selling and administrative expense        $782,000

Fixed selling and administrative expense              $412,000

Net Operating income                                                   $456,000

The companys degree of operating leverage is closest to:

a)            2.41

b)            9.54

c)            3.50

d)            1.49

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