Alvarez Technologies has sales of $3,000,000. The company's fixed operating costs total $500,000 and its variable costs equal 45.00% of sales, so the company's current operating income is $1,150,000. The company's interest expense is $500,000. What is the company's degree of total leverage (DTL)?
A. 3.0715
B. 2.9700
C. 2.1069
D. 2.5385
E. 3.0208
Answer: D
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