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The following income statement is provided for Vargas, Inc. Sales revenue (1,700 units x $19.20 per unit) Cost of goods sold (variable; 1,700 units x
The following income statement is provided for Vargas, Inc. Sales revenue (1,700 units x $19.20 per unit) Cost of goods sold (variable; 1,700 units x $9.20 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (1,700 units $1.20 per unit) Net income $ $ 32,640 (15,640) (3,200) 13,800 (5,200) (4,200) (2,040) 2,360 What is this company's magnitude of operating leverage? (Round your answer to 2 decimal places.) Multiple Choice 0.17 0.28 6.34 5.85
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