Exercise 1 (Chapter 11)-Calculating the magnitude of operating leverage The following income statement applies to Sylvester Company for the current year: Income Statement Sales Revenue (200 units x $60) $12,000 Variable Costs (200 unitsx $36)(7,200) Contribution Margirn Fixed Costs Net Income 4,800 (1,600) $3,200 Required: Use the contribution margin approach to calculate the magnitude of operating leverage