5- (2 points) Consider a three-year project with the following information: initial fixed asset investment = $360,000; straight-line depreciation to zero over the three year life; zero salvage value; price = $23 per unit; variable cost = $15 per unit; fixed costs = $105,000; quantity sold = 110,000 units; tax rate = 31.5%. What is the degree of operating leverage at the given level of output?

A) 1.18

B) 1.26

C) 1.30

D) 1.50

E) 1.92