In 20A, KZ presented total variable costs at P687.50; total fixed costs at P6,750,000; sales price per unit P1,250; sold 20,000 units; tax rate at 40%. What is the the operating leverage at 23,000 units sold in 20B if KZ will spend P750,000 in advertising expense in 20B?
A. 4.13
B. 3.97
C. None of the above
D. 4.38