Shelton Company Below Is an Income Statement for Shelton Company

Multiple Choice

Shelton Company Below is an income statement for Shelton Company:
$\begin{array}{ll}\text { Sales } & \$ 600,000 \\\text { Variable costs } & \underline{(150,000) } \\\text { Contribution margin } & \$ 450,000 \\\text { Fixed costs } & \underline{(300,000) } \\\text { Profit before taxes } & \underline{\$ 150,000}\end{array}$ Refer to Shelton Company.What is Shelton's degree of operating leverage?

A) 1.33
B) 2.00
C) 3.00
D) 4.00