Peterson Company and Olson Corporation Have the Following Income Statements

Peterson Company and Olson Corporation have the following income statements for the current year: $\begin{array}{lcc}& \underline{\text { Peterson Company}}& \underline{\text { Olson Corporation }}\\\text { Sales } & \$ 50,000 & \$ 50,000 \\\text { Variable expenses } &\underline{ 10,000 }&\underline{ 25,000} \\\text { Contribution margin } & \$ 40,000 & \$ 25,000 \\\text { Fixed expenses } & \underline{25,000} & \underline{10,000 }\\\text { Operating income } & \underline{\$ 15,000} &\underline{ \$ 15,000} \\\end{array}$
What is the degree of operating leverage for Peterson Company for the current year?

A) 0.375
B) 1.250
C) 1.667
D) 2.667