Use the Following Information for Questions

question 7

Multiple Choice

Use the following information for questions
Mercantile Corporation has sales of $2,000,000, variable costs of $800,000, and fixed costs of $900,000.
-Mercantile's degree of operating leverage is

• A) 1.33.
• B) 1.67.
• C) 1.50.
• D) 4.00.