Use the Below Information to Answer the Following Question Refer to the Table

Multiple Choice

Use the below information to answer the following question.
$\begin{array}{lr}\text { Sales }(100,000 \text { units }) & \$ 1,000,000 \\\text { Variable costs } & 300,000\\\text { Contribution margin } & 700,000 \\\text { Fixed manufacturing costs } & 200,000\\\text { Operating income } & 500,000 \\\text { Interest } & 75,000\\\text { Earnings before taxes } & 425,000 \\\text { Taxes }(30 \%) & 127,500\\\text { Net income }&\$297,500\end{array}$
Refer to the table. The degree of operating leverage is ________.

A) 1.40x
B) 1.56x
C) 3.33x
D) 2.22x