Question: A project has the following estimated data: price = $80 per unit; variable costs = $55 per unit; fixed costs = $25,000; required return =

A project has the following estimated data: price = $80 per unit; variable costs = $55 per unit; fixed costs = $25,000; required return = 15%; initial investment = $44,000; life = five years. What is the degree of operating leverage at the financial break-even level of output?

A.0.90

B.1.90

C. 2.90

D.3.90

E. 4.90

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