McDonald Company
the Following Information Relates to Financial Projections of McDonald

Multiple Choice

McDonald Company
The following information relates to financial projections of McDonald Company:
Projected sales                                                        75,000 units
Projected variable costs                                          $\$3.00$ per unit
Projectedfixed costs                                                $\$ 60,000$ per year
Projected unit sales price                                        $\$ 8.00$




Refer to McDonald Company.If McDonald Company achieves its projections,what will be its degree of operating leverage?

A) 6.25
B) 1.19
C) 1.68
D) 3.00