Jordan Company Jordan Company Manufactures a Single Product Refer to Jordan Company

Multiple Choice

Jordan Company Jordan Company manufactures a single product.Each unit sells for $15.The firm's projected costs are listed below:
$\begin{array}{ll}\text { Variable costs per unt: }\\~~\text { Prochıction } & \$ 5 \\~~\text { SG\&A } & \$ 1 \\\text { Fixed costs: } & \\~~\text { Prochıction } & \$ 40,000 \\~~\text { SG\&A } & \$ 60,000 \\~~\text { Estimated volume } & 20,000 \text { units }\end{array}$ Refer to Jordan Company.What is Jordan's projected degree of operating leverage for the current year?

A) 2.25
B) 1.80
C) 3.75
D) 1.67