Teal Company the Following Information Relates to Financial Projections of Teal

Multiple Choice

Teal Company The following information relates to financial projections of Teal Company:
$\begin{array}{ll}\text { Projected sales } & 60,000 \text { units } \\\text { Projected variable costs } & \$ 2.00 \text { per unit } \\\text { Projected fixed costs } & \$ 50,000 \text { per year } \\\text { Projected unit salesprice } & \$ 7.00\end{array}$ Refer to Teal Company.If Teal Company achieves its projections,what will be its degree of operating leverage?

A) 6.00
B) 1.20
C) 1.68
D) 2.40