i) The following income statement is presented for Vargas, Inc.

Sales revenue (3,300 units × $20.80 per unit)	$68,640
Cost of Goods Sold (Variable; 3,300 units × $10.80 per unit)	35,640
cost of goods sold (fixed)	4.800
Gross margin	28,200
administrative salaries	6,800
Depreciation	5,800
Supplies (3,300 units × $2.80 per unit)	9,240
Net Income	$6,360

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

ii) The following income statement of Ramirez Company in 2012 is presented:

Sales revenue (1,700 units × $19.20 per unit)	$32,640
Cost of goods sold (variable; 1,700 units × $7.20 per unit)	(12,240)
Cost of goods sold (fixed)	(3,200)
Gross margin	17,200
administrative salaries	(5,200)
Depreciation	(3,200)
Supplies (1,700 units × $1.20 per unit)	(2,040)
Net Income	$6,760

What was the company's contribution margin?