Pellman Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced. Variable costs per unit Direct materials 1,000 $12 $13 $7 Direct labor.. Variable manufacturing overhead. Variable selling and administrative expens.. $8 Fixed costs: Fixed manufacturing overhead... Fixed selling and administrative expense. $40,000 $11,000 There were no beginning ending inventories. or The unit product cost under absorption costing was $91 $72 $25 $32 A company that makes organic fertilizer has supplied the following data: Bags produced and sold. Sales revenue Variable manufacturing expense. Fixed manufacturing expense ... Variable selling and administrative expense Fixed selling and administrative expense Net operating income.. 680,000 $4,352,000 $1,972,000 $730,000 $782,000 $412,000 ..... $456,000 The company's degree of operating leverage is closest to 3.50 1.49 9.54 2.41