A company that makes organic fertilizer has supplied the following data:   Bags produced and sold 200,000Sales revenue$1,560,000Variable manufacturing expense$660,000Fixed manufacturing expense$448,000Variable selling and administrative expense$180,000Fixed selling and administrative expense$214,000Net operating income$58,000The company's degree of operating leverage is closest to:

A. 12.41
B. 26.90
C. 1.27
D. 3.45


Answer: A

Business

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