Sales (75,000units) P 750,000 Variable costs 225,000 Contribution margin P 525, 000 Fixed manufacturing costs 187,500 Operating income P 337,000 Interest 75,000 Earnings before taxes P 262,500 Taxes...

Sales (75,000units)                                                                      P 750,000

                Variable costs225,000

                Contribution margin                                                    P 525, 000

                Fixed manufacturing costs187,500

                Operating income                                                        P 337,000

                Interest  75,000

                Earnings before taxes                                                    P 262,500

                Taxes (at 31%)81,375

                Net income                                                                   P 181,125

                Shares outstanding 15,000

The degree of combined leverage is

a. 2.1x

b. 1.9x

c. 2.9x

d. 2.0x