Marcus Corporation currently sells 150,000 units per year at a price of $4.00 a unit. Its variable costs are 30 percent of sales, and its fixed operating costs are $300,000. What is Marcus's degree of operating leverage (DOL) at sales equal to 150,000 units?
A. 1.4×
B. 2.2×
C. 3.5×
D. 2.0×
E. 5.0×
Answer: C
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