Trident Food Corporation Generated the Following Income Statement for the Most

Trident Food Corporation generated the following income statement for the most recent fiscal year:

Sales revenues                                        $150,000
Variable cost of sales                              (120,000)
Gross profit                                                30,000
Fixed operating costs                               (10,000)
Net operating income (EBIT)                    20,000
Interest                                                     (15,000)
Earnings before taxes                                  5,000
Taxes (40%)                                                (2,000)
Net income                                                $3,000

What is Trident Food's degree of total leverage (DTL) ?

A) 4.0×
B) 6.0×
C) 1.5×
D) 5.0×
E) 50.0×