Putnam Company
Below Is an Income Statement for Putnam Company $\underline{\$150,000}$

Multiple Choice

Putnam Company
Below is an income statement for Putnam Company:
Sales                                                       $ 600,000
Variable costs                                          $\underline{\$150,000}$
Contribution margin                               $\$ 450,000$
Fixed costs                                              $\underline{(300,000) }$
Profit before taxes                                    $\underline{\$150,000}$


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

A) 1.33
B) 2.00
C) 3.00
D) 4.00