Parker Company
Below Is an Income Statement for Parker Company $\$ 400,000$

Multiple Choice

Parker Company
Below is an income statement for Parker Company:
Sales                                                                         $\$ 400,000$
Variable costs                                                          $\underline{(125,000) }$
Contribution margin                                                  $275,000
Fixed costs                                                            $\underline{(200,000) }$
Profit before taxes                                                  $\underline{\$75,000}$

Refer to Parker Company.What is Parker's degree of operating leverage?

A) 3.67
B) 5.33
C) 1.45
D) 2.67