Pickering Company Produced and Sold 45,000 Units of a Single

Multiple Choice

Pickering Company produced and sold 45,000 units of a single product last year, with the following results: $\begin{array} { | c | r | } \hline \text { Sales revenue } & \$ 1.350,000 \\\hline \text { Manufacturing costs: } & \\\hline \text { Variable } & 585.000 \\\hline \text { Fixcd } & 270.000 \\\hline \text { Sclling costs: } & \\\hline \text { Variable } & 40.500 \\\hline \text { Fixcd } & 54,000 \\\hline \text { Administrative cosis: } & \\\hline \text { Variable } & 184.500 \\\hline \text { Fixed } & 108.000 \\\hline\end{array}$ Pickering's operating leverage factor was:

A) 4.
B) 5.
C) 6.
D) 7.
E) 8.