Alvarez Technologies Has Sales of $3,000,000

Multiple Choice

Alvarez Technologies has sales of $3,000,000.The company's fixed operating costs total $500,000 and its variable costs equal 45.00% of sales,so the company's current operating income is $700,000.The company's interest expense is $500,000.What is the company's degree of total leverage (DTL) ?

A) 3.0715
B) 2.9700
C) 2.1069
D) 2.5385
E) 3.0208