Given the following income statement for OR company for 20X4: Sales (30,000 units) P 600,000 Less operating expenses: Variable P 390,000 Fixed 140,000 530,000 Net income P 70,000 The company’s degree...

Given the following income statement for OR company for 20X4:

                Sales (30,000 units)                                                 P 600,000

                Less operating expenses:

                Variable                                          P 390,000

                Fixed                                               140,000
530,000

             Net income                                                                   P 70,000

The company’s degree of operating leverage is

a. 3

b. 2

c. 4.28

d. 8.57