Jerry's Dog Food, Inc A)340
B)1

Jerry's Dog Food, Inc. is a dog food wholesaler located in Greenwich, Connecticut. Selected financial statement values for Jerry's are shown in the table below. What is the degree of operating leverage for Jerry's given the change in revenues from Year 1 to Year 2? $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Jerry's Dog } \\\text { Food, Inc. }\end{array} & & \\\hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Revenues } & \$ 170,000 & \$ 185,000 \\\hline \begin{array} { c } \text { Cost of Goods } \\\text { Sold }\end{array} & 140,000 & 148,000 \\\hline \text { SG\&A } & 10,000 & 11,000 \\\hline \text { Depreciation } & 2,000 & 5,500 \\\hline \text { EBIT } & 18,000 & 20,500 \\\hline\end{array}$$

A) 3.40
B) 1.57
C) 0.11
D) 1.00
E) 0.85