-The Degree of Combined Leverage Is
A) 2

$\begin{array}{ll}\text { Sales }(100,000 \text { units) } & \$ 1,000,000 \\\text { Variable costs } & \underline{300.000} \\ \text { Contribution margin } & 700,000 \\ \text { Fixed manufacturing costs } & \underline{250,000} \\ \text { Operating income } & 450,000 \\ \text { Interest } & 60.000 \\ \text { Earnings before taxes } & \overline{390,000} \\\text { Taxes (at } 31 \% \text { ) } & 120.900 \\ \text { Net Income } & \$ 269.100 \\ \text { Shares outstanding } & 10,000 \\\end{array}$
-The Degree of Combined Leverage is

A) 2.79x.
B) 1.9x.
C) 1.79x.
D) 3.46x.