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, price = $25 per unit, zero salvage value, fixed costs = $112,000, variable cost = $13 per unit, 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