Serfass Corporation's contribution format income statement for July appears below: The degree of operating leverage is closest to:

A) 0.05
B) 0.15
C) 21.31
D) 6.89

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its revenues, indicating the proportion of fixed costs in the company's cost structure.

Contribution Format Income Statement

An income statement format that separates fixed costs from variable costs, thus showing the contribution margin.