Ford Company the Following Information Relates to Financial Projections of Ford

Multiple Choice

Ford Company The following information relates to financial projections of Ford Company:
$\begin{array}{ll}\text { Projected sales } & 75,000 \text { units } \\\text { Projected variable costs } & \$ 3.00 \text { per unit } \\\text { Projected fixed costs } & \$ 60,000 \text { per year } \\\text { Projected unit sales price } & \$ 8.00\end{array}$ Refer to Ford Company.If Ford Company achieves its projections,what will be its degree of operating leverage?

A) 6.25
B) 1.19
C) 1.68
D) 3.00