Selected financial statement values for HQ are shown in the table. What is the degree of operating leverage for HQ given the change in revenues from Year 1 to Year 2? Selected Financial Information HQ Sustainable Maritime Industries Inc. ($000s) Year 1 Year 2 Revenues 67,723 68,832 Cost of goods sold 39,526 40,174 SG&A 13,148 13,300 Depreciation 2,095 2,129 EBIT 12,954 13,230 a. 1.1 b. 1.3 c. 1.2 d 1.0

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