he following income statement is provided for Vargas, Inc.

Sales revenue (3,400 units $20.90 per unit)	$71,060
Cost of goods sold (Variable; 3,400 units $10.90 per unit)	37,060
cost of goods sold (fixed)	4,900
Gross margin	29,100
Administrative salaries	6,900
Depreciation	5,900
Supplies (3,400 units $2.90 per unit)	9,860
Net income	$6,440

What is this company's magnitude of operating leverage? (round your answer to 2 decimal places.)

Part 3:

RTS sells a workbook with printed material unique to each course to each student who attends the course. Any workbooks that are not sold must be destroyed. Prior to the first class, RTS printed 20 copies of the books based on the clients estimate of the number of people who would attend the course. Each workbook costs $30 and is sold to course participants for $45. This cost includes a royalty fee paid to the author and the cost of duplication.

k.	Calculate the workbook cost in total and per student, assuming that 18, 20, or 22 students attempt to attend the course.(Round "Cost per student" answers to 2 decimal places.)

l.

Classify the cost of workbooks as fixed or variable relative to the number of students attending the course.

	Variable cost
	Fixed cost