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The following income statement is provided for Vargas, Inc. Sales revenue (2,000 units $19.50 per unit) Cost of goods sold (variable; 2,000 units $9.50 per
The following income statement is provided for Vargas, Inc. Sales revenue (2,000 units $19.50 per unit) Cost of goods sold (variable; 2,000 units $9.50 per unit) Cost of goods sold (fixed) Gross margin Administrative salaries Depreciation Supplies (2,000 units $1.50 per unit) Net income $ 39,000 (19,000) (3,500) 16,500 (5,500) (4,500) (3,000) $ 3,500 What is this company's magnitude of operating leverage
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