Assume Total Sales of $800,000, Total Variable Costs of $400,000

Multiple Choice

Assume total sales of $800,000, total variable costs of $400,000, and total fixed costs of $300,000.Of these amounts, $200,000 of the variable costs are product costs, and $100,000 of the fixed costs are period costs.What is the degree of operating leverage?

A) 0.25
B) 8.00
C) 2.00
D) 4.00