The Foggy Futures Weather Network Offers an Annual Almanac for Sale

Multiple Choice

The Foggy Futures Weather Network offers an annual almanac for sale each year with information about predicted weather patterns, severe storm safety tips, and a tracking chart. The finished product sells for $35, with a variable cost per unit of $21. The company has operating costs of $1,050,000. Using 100,000 units as a base, what is the degree of operating leverage?

A) 6.2
B) 5.7
C) 7.9
D) 4.0