The following income statement is provided for Vargas, Inc. Sales revenue (2,500 units x $20.00 per unit) Cost of goods sold (variable; 2,500 units x $10.00 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,500 units x $2.00 per unit) Net income $ 50,000 (25,000) (4,000) 21,000 (6,000) (5,000) (5,000) $ 5,000 What is this company's magnitude of operating leverage? Multiple Choice 0.24 0.25 4.00 4.20