Mark Smith Company Below Is an Income Statement for Mark

Multiple Choice

Mark Smith Company Below is an income statement for Mark Smith Company:
$\begin{array}{ll}\text { Sales } & \$ 400,000 \\\text { Variable costs } & (\underline{200,000}) \\\text { Contribution margin } & \$ 200,000 \\\text { Fixed costs } & (\underline{125,000}) \\\text { Profit before taxes }& \underline{\$ 75,000}\end{array}$ Refer to Mark Smith Company.What is the company's degree of operating leverage (DOL) ?

A) 2.67
B) 3.2
C) 5.33
D) 10.67