Selected financial statement values for HQ are shown in the table. What is the degree of operating leverage for HQ given the change in revenues from Year 1 to Year 2?

Selected Financial Information HQ Sustainable Maritime Industries Inc. ($000s)
	Year 1	Year 2
Revenues	67,723	68,832
Cost of Goods Sold	39,526	40,174
SG&A	13,148	13,300
Depreciation	2,095	2,129
EBIT	12,954	13,230

• 1.3

• 1.2

• 1.1

• 1.0