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he following income statement is provided for Stan Inc. Sales revenue 2,300 units @ $19.80 per unit $45,540 Less: Cost of goods sold Variable cost
he following income statement is provided for Stan Inc. | |||||||
Sales revenue | 2,300 | units | @ | $19.80 | per unit | $45,540 | |
Less: Cost of goods sold | |||||||
Variable cost portion of COG sold | @ | $9.80 | per unit | ($22,540) | |||
Fixed cost portion of COG sold | ($3,800) | ||||||
Gross Margin | $19,200 | ||||||
Less: Administrative salaries (all fixed) | ($5,800) | ||||||
Less: Selling expenses (all fixed) | ($4,800) | ||||||
Less: Variable selling expenses | 2,300 | @ | $1.80 | per unit | ($4,140) | ||
Net Income | $4,460 | ||||||
What is the company's magnitude of operating leverage? | |||||||
Type you answer in the answer box below. Round your answer to 2 digits | |||||||
Type only the number and no other text. | |||||||
Operating leverage | [A] |
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