Consider a three-year project with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the three year life; zero salvage value; price = $25 per unit; variable cost = $13 per unit; fixed costs = $112,000; quantity sold = 110,000 units; tax rate = 31.5%. What is the degree of operating leverage at the given level of output?

A) 1.13

B) 1.15

C) 1.17

D) 1.18

E) None of the above